On November 8, 2024, AUGROUP TECHNOLOGY CO., LTD. (hereinafter referred to as "AUGROUP"), based in Shenzhen, Guangdong, successfully listed on the main board of the Hong Kong Stock Exchange.
In this IPO, AUGROUP issued a global offering of 29.8947 million shares, accounting for 7.20% of the total shares after completion of the issuance, without exercising the overallotment option. The offering price per share was HK$15.60, raising a total of approximately HK$0.466 billion, with net proceeds of approximately HK$0.388 billion.
AUGROUP has an additional 15% greenshoe option, which if fully exercised, could issue up to an additional 4.4841 million shares, raising a maximum of approximately HK$69.952 million.
The public offering of shares in this IPO by AUGROUP was oversubscribed by 17.74 times, with the international portion oversubscribed by 2.45 times.
In this IPO, AUGROUP introduced three cornerstone investors who subscribed to approximately 7.0128 million shares of the offering, including Sevis Era (301381.SZ), LC Logistics (02490.HK), and Ms. Huang Jiahui, a director of Zhongzhou Properties. The cornerstone investors' subscription accounts for 23.46% of the global offering shares and 1.69% of the total shares after completion of the offering.
According to the prospectus, in AUGROUP's post-listing shareholder structure, Mr. Lu Haichuan holds directly 17.05%, 0.98% through Leqing Augustus Growth No. 4; Mr. Ze Huiyue holds 10.41%; Mr. Lu and Mr. Ze act in concert, jointly controlling 28.44% of the voting rights. Leqing Augustus Growth Employee Stock Ownership Plan holds 1.15%; Jinglin holds 8.74%; Shenzhen Innovative Investment Group holds 8.31%; Sequoia Bosun holds 6.21%; others including Starry Fund, CITIC Securities Investment, Midea Group (000333.SZ) under Midea Fund, Zhuhai Mountain Villa, Suzhou Kaihui Growth, Wuhan Shunchuang, Hongdao Zhixin, Hainan Hongdao, Silk Road Industrial Investment, Die Investment, Sevis Era (301381.SZ), and more than ten institutions and dozens of individuals collectively hold 40.02%; other public shareholders hold 7.20%.
Established in 2010, AUGROUP is a top brand operator and export logistics service provider focusing on providing high-quality furniture and home products. It mainly offers products to consumers through third-party e-commerce platforms such as Amazon, Walmart, Wayfair, and others in the USA, Europe, and other overseas markets. With a robust supply chain management and effective logistics solutions, AUGROUP provides consumers with a pleasant living experience across a wide range of "home and life" scenarios. Apart from providing logistics for its own e-commerce business through its subsidiary Shenzhen Xiyu Smart Warehouse, it also offers efficient one-stop logistics solutions to customers, including domestic consolidation, first-leg international freight services, overseas transshipment, overseas warehousing, and order delivery. According to Frost & Sullivan data, in 2023 by Gross Merchandise Volume (GMV), AUGROUP ranks fifth among global participants in the furniture and home B2C e-commerce market and first in the B2C overseas e-commerce market based on Chinese sellers of furniture and home products. Based on Frost & Sullivan's data, in 2023, revenue generated by B2C export e-commerce logistics solutions using overseas warehouses ranked Shenzhen Xiyu Smart Warehouse fourth among all B2C export e-commerce logistics solution providers in China, with a market share of approximately 1.2%, ranking first among all China-focused B2C export e-commerce logistics solution providers specializing in medium and large items.
The intermediaries for AUGROUP's IPO listing (02519.HK) mainly include:
Huatai International serves as its exclusive sponsor, overall coordinator, joint global coordinator, joint bookrunner, and joint lead manager;
Citic Lyon, DBS Asia serve as its overall coordinator, joint global coordinator, joint bookrunner, joint lead manager;
Lifemore Securities serves as its joint bookrunner, joint lead manager;
Deloitte is its auditor;
Jin Du, Gawain act as company's China counsel, company's Hong Kong and USA counsel;
Jingtian Gongcheng, SmithField serve as brokerage China counsel, brokerage Hong Kong and USA counsel;
Frostrich Sullivan is its industry consultant.
Link to the prospectus of Aojigroup:
https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1031/2024103100188_c.pdf
