Global kitchenware brand CAROTE (02549.HK) from Hangzhou, Zhejiang, will be listed for subscription from today (September 23) until Thursday (September 26), with an expected listing on the Hong Kong Stock Exchange on October 2, 2024. The joint sponsors are BNP Paribas Securities and CMB International.

CAROTE plans to globally issue 0.1298645 billion shares (approximately 24.25% of the total shares after the completion of the issuance), with 90% for international placement and 10% for public offering, along with a 15% overallotment option. The offer price per share ranges from 5.72 to 5.78 Hong Kong dollars, with 500 shares per board lot, raising up to approximately 0.751 billion Hong Kong dollars.

Assuming an offer price of 5.75 Hong Kong dollars per share (midpoint of the offer price range) and no exercise of the overallotment option, CAROTE expects total listing expenses of around 69 million Hong Kong dollars, including 2.5% underwriting commission, 2% discretionary bonus, HKEX listing fee, SFC transaction levy, HKEX trading fee, FXDC transaction levy, legal and other professional fees, printing and other expenses.

CAROTE's IPO introduces 2 cornerstone investors subscribing to a total of 40 million US dollars (approximately 0.313 billion Hong Kong dollars) worth of shares, with MPC (Sequoia Capital) subscribing to 20 million US dollars and Genesis Capital's YSC Go subscribing to 20 million US dollars.

CAROTE's IPO is expected to raise a net amount of around 0.678 billion Hong Kong dollars (based on the median offer price): approximately 35% is earmarked for seeking acquisition and investment opportunities; around 25% for product research and development; about 20% for expanding sales channels; roughly 10% for ESG-related investments; and another 10% for operating capital and other general corporate purposes.

In CAROTE's IPO, BNP Paribas Securities and CMB International act as joint sponsors, overall coordinators, joint global coordinators, and joint bookrunners. Other underwriters include Futu Securities, Tiger Brokers, Livermore Securities, and TradeGo Markets.

According to the prospectus, in CAROTE's pre-listing shareholder structure, Mr. Zhang Guodong and Ms. Lv Yili indirectly own 45% and 55% of Yili Investment respectively, holding 74.69% of the shares; Mr. Zhang owns 0.12% of Guodong Capital as the GP of Carote CM*, holding 0.30% of the shares; Mr. Hartinger holds 0.76% through Denk Trade; other shareholders hold 24.25%.

* Other shareholders of Carote CM include: Luo Qin Investment with 99.88% stake, whose shareholders are Mr. Zhang Jincai (43.75%), Ms. Meng Haifang (25%), Mr. Xia Chenhao (18.75%), and Ms. Xue Yuner (12.50%).

Founded in 2007, Karot, a global kitchenware brand, provides customers with practical, well-designed, and reasonably priced products. It has established a prominent position in the online kitchenware segment of major markets such as China, the USA, Western Europe, Southeast Asia, and Japan, and has become one of the fastest growing well-known kitchenware brands globally. Karot's brand has a significant presence in the online cookware industry in major markets globally. According to the Zhaoshi Consulting report, based on retail sales in 2023, Karot ranks fourth in China, second in the USA, third in Western Europe, second in Southeast Asia, and third in Japan.

CAROTE prospectus link:

https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0923/2024092300004_c.pdf