Futu News on November 8th, $AUGROUP (02519.HK)$ The first day opened low, falling by 11.03%, closing at 13.88 Hong Kong dollars as of press time, with a turnover of 42.3277 million Hong Kong dollars, and a total market value of 5.763 billion Hong Kong dollars.

Market source: Futu Securities.

According to previous reports, in the gray market trading of Futu on the last trading day, Ao Ji shares opened low in the gray market, closing down by 12.18%, at 13.7 Hong Kong dollars, a turnover of 9.4967 million Hong Kong dollars, and a total market value of 5.688 billion Hong Kong dollars; 300 shares per lot, excluding handling fees, with a loss of 570 Hong Kong dollars per lot.

During the public offer stage, Aoke Shareholding received a subscription of 17.74 times, and the final number of shares sold in the public offer after reallocation was 8.9685 million shares, accounting for approximately 30% of the total shares offered. A total of 5570 valid applications were received, with 4896 applications accepted. The percentage of H shares allocated to those who applied for one hand subscription is approximately 70.02% of the total applications.

In addition, during the international placement phase, Ao Ji shares received 2.45 times oversubscription, with the final number of internationally offered shares being 20.9262 million shares, equivalent to 70% of the total number of shares offered. Futu News collated the relevant data in the following table:

Company overview

Oujigroup is an online retailer specializing in providing high-quality furniture and home products. With a stable supply chain management and effective logistics solutions, it offers consumers a pleasant living experience in a wide range of "home and life" scenarios.

The company focuses on providing popular proprietary brands such as ALLEWIE, IRONCK, LIKIMIO, SHA CERLIN, HOSTACK, and FOTOSOK in the furniture and home furnishing category. The company's product portfolio also includes categories such as power tools, household appliances, consumer electronics, and sports and health products. Based on the GMV calculation for 2023, the company's ten product categories (bed frames, beds, refrigerators, wardrobes and drawers, food cabinets, bookcases, dressing tables and stools, dining cabinets and side cabinets, electric screwdrivers, and high-pressure cleaning machine hose reels) have a market share of over 10% on the Amazon USA website.

Strong supply chain management and product development capabilities are an indispensable part of the company's cost management. The company is committed to innovation in product design and development. The company explores the use of new materials compatible with different types of furniture and home furnishings, optimizing the structure to reduce packaging volume and weight, thereby lowering procurement and logistics costs and maintaining competitive pricing.

Financial overview

In terms of financial situation, Aoji shares had revenues of 9.071 billion yuan, 7.1 billion yuan, and 8.683 billion yuan in 2021, 2022, and 2023 respectively, with gross profits of 1.895 billion yuan, 2.479 billion yuan, and 2.994 billion yuan during the same period, with a compound growth rate of 25.69%.

Intended Use of Funds

In terms of fundraising purposes, Aoji shares expects the net proceeds from the share issuance to be approximately 0.3875 billion Hong Kong dollars (calculated at the final issue price). According to the prospectus, the company plans to use the net proceeds from the global share issuance as follows: The company plans to use approximately 70.0% of the net proceeds for the expansion of its business. The company aims to enhance its business scale and provide high-quality products to consumers; approximately 15.0% is expected to be used to strengthen the company's digitalization. The company plans to further improve its information management system; approximately 10.0% is expected to be used for potential investments in the industry chain; and approximately 5.0% of the net proceeds are expected to be used for operating capital and general corporate purposes.MergerOpportunities; and approximately 5.0% of the net proceeds are expected to be used for operating capital and general corporate purposes.

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Editor/Afina