The retail digital solutions service provider, Dmall (02586.HK), is offering shares for subscription from today (November 28) until next Tuesday (December 3), and is expected to be listed on the Hong Kong Stock Exchange on December 6, 2024, with ubs group, bocom intl, and china merchants serving as joint sponsors.
Dmall plans to globally offer 25.774 million shares (representing 2.91% of the total shares after the offering is completed), with 90% for international offering and 10% for public offering, plus an additional 15% over-allotment option, priced at HKD 30.21 per share, with a minimum purchase of 100 shares, potentially raising approximately HKD 0.779 billion.
Based on the share price of HKD 30.21 (the median price within the price range), assuming the over-allotment option is not exercised, Dmall expects the total expenses for the listing to be about HKD 0.155 billion, which includes 3.25% of underwriting commission (of which 11% is discretionary), listing fees from the stock exchange, transaction fees from the Securities Commission, trading fees from the stock exchange, transaction fees from the Financial Bureau, legal and other professional fees, printing and other expenses.
For this IPO, Dmall has introduced one cornerstone investor; DFI Retail Group, a member company of Jardine Matheson, subscribed for USD 39.06 million and 10.065 million shares of the offering through DFI Development, accounting for approximately 39.05% of the total number of shares offered and 1.14% of the total shares after the offering.
For this IPO, Dmall expects a net fundraising amount of approximately HKD 0.6237 billion: about 42.1% will be allocated to the development of new applications and service modules; approximately 30.0% will be allocated to talent recruitment related to the company's business expansion; about 10.0% will be allocated to selectively seeking strategic partnerships, investments, and acquisitions that complement the company's natural growth strategy, especially those that can enhance the company's product portfolio, strengthen its technological capabilities, and consolidate its market position; approximately 7.9% will be used to expand the company's sales network and further strengthen the company's brand reputation; and about 10.0% will be for working capital and general corporate purposes.
For this IPO, ubs group, bocom intl, and china merchants serve as joint sponsors, overall coordinators, and joint global coordinators; citic lyon and china international capital corporation act as overall coordinators and joint global coordinators; jiangsu international, mingyin securities, and haitong int'l are joint global coordinators; other underwriters include agricultural bank intl, bank of china intl, bocom intl, zhuzhou international, china galaxy intl, futu securities, gf sec (Hong Kong), industrial bank international, orient, baihui securities, ruibond securities, swhy, pudong development bank international, tiger securities, and uob kay hian; kpmg serves as its auditor; haiwen and sidley are its corporate lawyers in china and hong kong; grandall is its data compliance lawyer in china; jingtian gongcheng and shida are its brokerage lawyers in china and hong kong; frost & sullivan serves as its industry consultant.
According to the prospectus, in Dmall's post-listing shareholder structure, Dr. Zhang Wenzhong indirectly holds approximately 56.67% through several entities; IDG dollar fund shareholders collectively hold 6.24%; iqiyi yuan fund holds 1.21%; industrial bank holds 3.22% through shanghai xingwu; tencent (00700.HK) holds 3.17% through its image structure; china's state-owned enterprise structural adjustment fund holds 2.82% through yonglu holdings; shenzhen investment control bay area private equity fund holds 2.56%; daewoo global holds 1.76%; Mr. Zhang Bin (Dr. Zhang's brother) holds 1.52% through Ultron Age; directors, executives, and employee trust hold 8.46% through Vigoros Link Group; other investors, including kingdee int'l (00268.HK), guoquan enterprise consulting, xinyin hong kong, minsheng commercial bank international, yunhui limited (yunda), beijing xintian di investment, and beijing huaan shidai industrial investment center, collectively hold 10.68%; public shareholders hold 2.91%.
Dmall, established in 2015, provides retail digital solutions to retailers in the local retail industry and has successfully expanded its business to other countries and regions in asia, including the Hong Kong Special Administrative Region, Cambodia, Singapore, Malaysia, Macau Special Administrative Region, Indonesia, the Philippines, and Brunei. According to frost & sullivan data, in 2023, based on revenue, Dmall is the largest retail digital solutions service provider in china and a leading retail digital solutions service provider in asia.
Link to the multi-point intelligent prospectus:
https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1128/2024112800016_c.pdf
