Hong Kong Stock IPO Watch

As of the 29th week of 2024, 1 new stock was listed on the Hong Kong Stock Exchange, 2 new shares were offered, 1 new share passed the hearing, and 1 company submitted a prospectus.

Available this week

• Automotive Aftermarket Service Provider $Guanglian Technology Holdings (02531) $ (2.13% on the first day)

This week's stock offering

• none

Through hearings

• $Haier Electric (01169) $ Group's insurance service provider Zhongmiao Innovation Technology (7.22)

• Differentiated Targeted Therapies in Lung Cancer Biomedical Company Tongyuankang Pharmaceutical (7.22)

Form submission company

• Popular convenient Chinese restaurant chain restaurant small vegetable garden

• Yingtong Holdings, the largest brand management company in the perfume market in mainland China, Hong Kong and Macau

other

• The new four robot dragons “Galaxy GM GalaxyBot” received investment from Hong Kong Investment Corporation, and priority will be given to listing in Hong Kong in the future

• $iFLYTEK (002230) $ iFLYTEK Medical's listing and full circulation in Hong Kong was notified by the Securities Regulatory Commission

• Qun Nuclear Technology/Cool Kara is from Hangzhou, Zhejiang and plans to go public in Hong Kong. Sponsors may include CCB and J.P. Morgan Chase

Dazhong Convenience Chinese Restaurant Chain Restaurant Xiaocaiyuan handed out the list again

On July 16, Anhui Xiaocaiyuan International submitted a prospectus on the Hong Kong Stock Exchange to go public for an IPO in Hong Kong. This is another application after its submission expired on January 16, 2024. Co-sponsored by Huatai International and UBS.

The company was founded in 2013. As one of the well-known Chinese popular convenience Chinese restaurant chains, the company ranks among the top in the industry in terms of business scale and growth rate. As of July 8, 2024, Little Vegetable Garden has established a nationwide network of 623 direct stores in operation, covering Anhui, Jiangsu, Shanghai, Zhejiang, Beijing, Hubei, Tianjin, Guangdong, Hebei, Henan, Shandong, Jiangxi and other regions of China. Little Vegetable Garden's brand portfolio includes “Little Vegetable Garden,” “Guandian,” “Fuxing House,” and “Chef.”

According to Frost & Sullivan's data, in terms of store revenue as of 2023, “Little Vegetable Garden” ranked first among all brands in the Chinese popular convenient Chinese restaurant market with customer unit prices ranging from RMB 50 to RMB 100.

As of July 8, 2024, Little Vegetable Garden has established a comprehensive supply chain system, composed of a central kitchen and 12 warehouses, and has a self-built transport fleet of more than 200 vehicles to ensure the effective delivery of supplies to each store.

The revenue from the small vegetable garden mainly comes from dine-in business and takeout business, as well as income from small sales of ingredients and commissions collected from a power bank solution provider, and new retail business.

In the first four months of 2024, the total number of dine-in customers at the Xiaocaiyuan store was about 17.5107 million, and the average consumption of dine-in customers was RMB 61; the number of takeout orders was about 8.0848 million, and the average takeout order cost RMB 73.3 million.

In terms of performance, in 2021, 2022, and 2023, the company's revenue was 2.646 billion, 3.213 billion, 4.549 billion yuan, and 1,680 billion yuan, respectively, and the corresponding net profit was RMB 0.227 billion, 0.238 billion, 0.532 billion, and 194 million yuan, respectively.

Miao Innovation Technology submits an IPO prospectus

On July 22, Zhongmiao Innovation Technology from Qingdao, Shandong passed a hearing on the Hong Kong Stock Exchange and plans to be listed on the Hong Kong Main Board. Guotai Junan is the sponsor.

The company was founded in 2017, and in that year it acquired Haier Insurance Agency, which is engaged in insurance agency services, which was founded in 2001. As a rapidly growing digital priority insurance agency service and solution provider in China, the company has established an online and offline integrated service model covering the main processes of insurance business including risk assessment, provision of scenario-based consulting, distribution of insurance products and insurance claims.

Zhongmiao Innovation Technology has established an ecosystem that empowers participants to enhance value and user experience and improve service efficiency. During the track record period, the company's ecosystem has connected more than 60 insurance companies, including the top three insurance groups in China; on December 31, 2022, it has connected more than 8,600 insurance agents, covering more than 10 cities in the four provinces of Shandong, Hebei, Henan and Jilin; and has connected nearly 20 strategic channel partners, more than 0.012 million corporate insurance users and 0.25 million family insurance users during the track record period.

Zhongmiao Innovation Technology's business mainly includes two divisions: (i) insurance agency services, distributing insurance products to insurance users through insurance agents and promoting insurance products through cooperation with strategic channel partners; and (ii) IT and other services, designing and developing digital solutions according to customer requirements, and providing IT services to insurance company partners and insurance intermediaries and companies from different industries. The company mainly sells four types of insurance products: (i) property insurance products; (ii) life and health insurance products; (iii) accident insurance products; and (iv) car insurance products

In terms of performance, in 2021, 2022, and 2023, the company's revenue was 0.093 billion, 0.12 billion, and 148 million yuan, and net profit for the same period was 20.223 million, 26.992 million, and 36.349 million yuan, respectively.

US Stock IPO Watch

New stock listings this week

• $QMMM Holdings Limited. (QMMM) $ (first day +1.75%)

Available next week

• $OrangeCloud Technology Inc. (ORKT) $

• $Primega Group Holdings Limited (PGHL) $

• $Onestream Inc (OS) $

• $Actuate Therapeutics Inc (ACTU) $

• $Lineage (LINE) $

• $Concentra Group Holdings Parent Inc (CON) $

• $Star Gaming Might (NIPG) $

• $Powell Max Limited (PMAX) $

• $Autozi Internet Technology (Global) Ltd. (AZI) $

• $BloomZ, Inc. (BLMZ) $

• $Flewber Global (FLAI) $

Other forms

• FATPipe Networks (FATN), a network software solutions provider

• South America's largest airline LATAM Airlines Group S.A. (LTM)

• CData Software, Inc., a leading provider of data access and connectivity solutions

other

Guangzhou's autonomous driving technology company Wenyuan Zhixing WeRide may go public in the US at the end of August

Wokkrypton Medical/Shanyu Medical Devices

On July 17, WORK Medical Technology Group LTD. (hereinafter referred to as “Wokrypt Medical”), the holding company of Hangzhou Shanyou Medical Devices Co., Ltd. (hereinafter referred to as “WOK”), updated its prospectus with the US Securities Regulatory Commission (SEC) to be listed on the US NASDAQ. It was secretly filed with the SEC as early as June 23, 2022, and the prospectus was publicly disclosed on April 27, 2023.

As a medical device supplier, the company mainly produces and sells Class I and Class II medical devices. The products include medical masks, arterial compression tourniquets for hemostasis, disposable breathing circuits for transporting oxygen and anesthetic gas, laryngeal mask airways to keep patients' airways clear during anesthesia, and tracheal intubation to keep the trachea clear so that air can enter the lungs.

The direct end customers of Vokrypton Healthcare include hospitals, pharmacies, and medical institutions. Currently, there are 21 types of medical devices in the product portfolio, all sold domestically, and 15 of them are sold internationally. In the Chinese market, the products of the Chinese subsidiary are sold to 34 provincial administrative regions; internationally, the products are exported to more than 30 countries in Asia, Africa, Europe, North America, South America and Oceania.

In terms of performance, the company was 19.7113 million, 13.566 million, and 5.3091 million US dollars in the 2022, 2023, and 2024 fiscal years, respectively, and the corresponding net profit was 0.9441 million, 0.0634 million, and 0.2349 million US dollars, respectively.

Latin American Airlines Group, the largest airline group in South America

On July 18, LATAM Airlines Group, the largest airline group in South America, submitted an IPO application to the US Securities and Exchange Commission and plans to raise up to $0.533 billion in a US initial public offering. Unlike the regular F-1 application process, LATAM chose to go through the 424B7 application process, thanks to the fact that its shares are already traded in the Chilean market, which qualifies the company to accelerate its listing in the US market.

The airline, which is headquartered in Santiago, the capital of Chile, plans to issue 1,9 million American Depositary Receipts (ADRs) at a price of $28.06 per share, which is the same as its final closing price on the San Diego Stock Exchange. According to this pricing, LATAM Group's market capitalization is expected to reach 8.5 billion dollars.

LATAM's business is unrivaled in South America, and it provides more than twice as many flight services as any other airline group in the region. According to data as of March 31, 2024, LATAM Airlines operates the number of flights, making it one of the top ten global airline groups. At the same time, LATAM is also the largest cargo airline in South America based on the size of its cargo fleet. As of the same date, LATAM Group provided passenger services to 148 destinations in 26 countries and cargo services to 166 destinations in 33 countries. Its operating fleet included 336 aircraft, 20 of which were dedicated freighters. In 2022, LATAM completed the restructuring process under Chapter 11.

LAM Airlines Group's listing plans are following the steps of another Latin American airline, Aeroméxico (AERO), which submitted a $0.3 billion financing application in May of this year, but has yet to advance its listing plan.

LATAM Group's business restructuring and growth was supported by heavyweight partners such as Sixth Street Partners, Strategic Value Partners, Delta Air Lines, and Qatar Airways. The company's history dates back to 1929, and according to revenue data for the past 12 months ending March 31, 2024, LATAM Group achieved revenue of 12.1 billion dollars. The company plans to list on the New York Stock Exchange under the ticker symbol LTM.

other

On the SPAC side

Canna-Global Acquisition Corp. announces letter of intent to merge with machine learning investment platform Invest Inc.