Futu news on October 28th, this Wednesday$CGII HLDGS (01940.HK) $According to the announcement, the company plans to issue 300 million shares from October 28 to November 2, including 30 million shares for public offering and 270 million shares for international offering at an issue price of HK $1.37 to HK $1.77 per share, 2000 shares per share, which is expected to be listed on November 10.

It is reported that China Gas Industry Investment, founded in 2006, is a leading professional industrial gas company and is held by funds established by Hegang Group, Bank of China International Investment Co., Ltd. And Temasek Holdings Private Co., Ltd. The company is mainly engaged in the supply of pipeline industrial gas, liquefied industrial gas and liquefied natural gas related business, including the supply of liquefied natural gas and the provision of gas transportation services.

According to the Frost Sullivan report, the company is the second largest industrial gas supplier in the Beijing-Tianjin-Hebei region in 2019 by revenue.

In terms of financial data, the company's total income from fiscal year 2017 to fiscal year 2019 was 1.027 billion yuan, 1.146 billion yuan and 1.305 billion yuan respectively, with a compound annual growth rate of 12.7%. The net profit recorded in the same period was 79.991 million yuan, 120 million yuan and 134 million yuan respectively, with a compound annual growth rate of 29.3%. In the first half of 2020, the company recorded a total income of 598 million yuan and a net profit of 64.725 million yuan.

In terms of industry, China's industrial gas market has grown steadily, driven by the steady growth of China's macro-economy and the development of industrial gas in downstream industries such as iron and steel and chemical industry, which play an important role in its production process. This trend will continue in the future, and the market is expected to grow from about 147.7 billion yuan in 2019 to about 227.5 billion yuan in 2024, with a compound annual growth rate of about 9 percent.

The industrial gas revenue generated in the Beijing-Tianjin-Hebei region increased from about 15.5 billion yuan in 2013 to about 25.5 billion yuan in 2019, with a compound annual growth rate of about 10.5 percent. Earnings are expected to increase to about 38.4 billion yuan in 2024, with a compound annual growth rate of about 8.5 per cent from 2019 to 2024.

In terms of fund-raising purposes, the company intends to use the net proceeds from the share sale for the following purposes: about 91.6% will be used for the procurement and relocation of air separation units related to the development of the China Gas Investment Corporation (Tangshan) plant; about 8.4% will be used for working capital and other general corporate purposes.