Public launch closing date: 12: 00 noon on February 2, 2018
Announcement application results: February 9, 2018
Listing date: February 12, 2018
The family guarantor:
Yun Fu Rong Tong Co., Ltd.
Summary of statistics:
Number of shares sold: 250000000 shares
Proportion of shares sold publicly: 10.0%
Sales: HK $0.30 to HK $0.50
Estimated collection of funds: HK $7500 to HK $125 million
Income per hand: HK $4040.31
A summary of the collection
The collection mainly distributes third-party petrochemical products and sells own-brand lube oil in Hong Kong. it is also an authorized card agent of an oil company in Hong Kong. According to the Frost Sullivan report, for the year ended March 31, 2017, it was the second largest diesel distributor in Hong Kong, accounting for about 19.8% of the market, based on the estimated value of diesel fuel in Hong Kong. At the same time, it manages a total of 28921 credit card cards, and according to the Frost Sullivan report, based on Hong Kong's estimated total revenue (gross base), it was the second largest card agent in Hong Kong for the year ended 31 March 2017.
The petrochemical product portfolio includes 1) diesel oil; 2) diesel oil (including own-brand oil and third-party oil); and 3) other petrochemical products, such as green oil.
Industry summary
According to Frost Sullivan data, Hong Kong's overall diesel consumption (including industrial and logistics uses) increased from 13.258 billion litres in 2011 to 14.400 billion litres in 2016, representing a compound annual growth rate of 1.7 per cent. It is estimated that the overall diesel consumption in Hong Kong will increase from 1.453.2 billion litres in 2017 to 1,572.6 billion litres in 2021, with a compound annual growth rate of 2.0%.
According to Frost Sullivan data, the estimated sales revenue of industrial lubricating oil in Hong Kong increased from HK $2 billion in 2011 to HK $4 billion in 2016, representing a compound annual growth rate of 9.0%. It is expected that the complex annual growth rate from 2016 to 2021 will reach 7.2%.
Cymbals
Based on the supply of diesel and lube oil by a certain oil company, the total cost of diesel and lube oil to that supplier accounts for about 94.9% of the total cost in the year ended March 31, 2017. If there is a relationship between the supplier and the supplier, or if there is a shortage of supply from the supplier, it may have a significant adverse effect on the business, business performance and operating conditions of the supplier.
Valuation
According to the IPO document, as of July 31, 2017, shares should account for HK $0.13 to HK $0.18 per share of tangible assets as calculated on the basis of the 8.125 shares expected to be issued after the completion of the sale of the shares.