On September 22, 2023, Migao Group Holdings Limited (“MGM Group”) from Gaoming District, Foshan, Guangdong submitted a prospectus on the Hong Kong Stock Exchange to be listed on the Hong Kong Main Board. This is another application after it was submitted and expired twice on July 6, 2022 and February 28, 2023.
On August 18, 2023, MGM Group obtained the Overseas Issuance Listing Filing Notice from the International Cooperation Department of the China Securities Regulatory Commission (China Joint Letter (2023) No. 1135) to issue no more than 258,750,000 overseas listed common shares.
The MGM Group was listed on the Toronto Stock Exchange GEM in 2006, transferred to the Toronto Stock Exchange in 2007, then privatized and delisted in 2016.
Link to the MGM Group prospectus:
Main business
As a leading potash company in China, Migao Group has comprehensive capabilities integrating procurement, manufacturing, processing and sales. It mainly provides various types of potash fertilizer products, including potassium chloride, potassium sulfate, potassium nitrate, compound fertilizer, etc.
According to Frost & Sullivan's report, based on 2021 potash sales, Migao Group ranked third among Chinese potash fertilizer companies (market share of about 7.6%) and second among Chinese non-reserve potash companies; based on 2022 sales of potassium chloride, potassium sulfate and potassium nitrate, it ranked third, fourth, and fifth among Chinese potash companies, respectively, with market shares of 7.0%, 4.0%, and 0.3%, respectively.
Among the top five potash companies in China, Migao Group is the only fertilizer supplier that provides a comprehensive product line (i.e. potassium chloride, potassium sulfate, potassium nitrate, and compound fertilizer). Migao Group was awarded the “China Potash and Potash Industry Meritorious Enterprise” by the Potassium Salt and Potash Branch of the China Inorganic Salt Industry Association in 2020, and has also been continuously (since 2016) selected by the China Chemical Information Center and the China Chemical Intelligence and Information Association as “China's Top 10 Potash Fertilizer Companies” and “China's Top 100 Chemical Fertilizer Companies”.
Shareholder structure
According to the prospectus, in the pre-listing shareholder structure of MGM Group, the controlling shareholder was Mr. Liu Guocai, who held 100% of the shares.
Directors and Executives
The board of directors of MGM Group consists of 6 directors, including 3 executive directors and 3 independent non-executive directors.
Board of Directors (6 members)
Executives (7)
Executives include Mr. Liu Guocai, Chairman of the Board of Directors, CEO and Executive Director; Mr. Sun Pingfu, Executive Director and Director of R&D; Mr. Dong Benzi, Executive Director and Director of Internal Control; Ms. Liu Yaqin, Financial Director; Mr. Fu Yangmei, Sales Manager; Mr. Liu Xuebin, Head of Production (North China); and Mr. Shi Kaiguo, Head of Production (South China).
Company performance
According to the prospectus, in the past fiscal year 2021, fiscal year 2022, and fiscal year 2023 (the fiscal year ends on March 31), the operating income of the Migao Group was 2,082 billion yuan, 38.41 billion yuan, and 4.723 billion yuan, respectively, and the corresponding net profit was 207 million yuan, 397 million yuan and 422 million yuan, respectively.
Intermediary team
The intermediary team for the current IPO of MGM Group mainly includes: Guangfa Finance (Hong Kong) as its sole sponsor; Deloitte as its auditor; Jingtian Gongcheng and Aster are the company's Chinese lawyers and Hong Kong lawyers respectively; Commerce and Morgan Lewis are the company's Chinese lawyers and the company's Hong Kong lawyers respectively; and Frost Sullivan is its independent industry advisor.