BRIEF: Quantgroup shares double in popular but miniscule Hong Kong IPO

2685.HK
Baozun does e-commerce tools

Shares of online consumer website operator Quantgroup Holding Ltd. (2685.HK) opened up 165% in their Hong Kong trading debut on Thursday, and held on to much of the gains to close up 89% at HK$18.50 at the end of their first trading day.

The company sold 13.35 million shares for HK$9.80 apiece, representing the top of their range. The public portion of the offering for local Hong Kong investors was 9,365 times oversubscribed, while the international tranche was 14 times oversubscribed.

Quantgroup operates two core businesses: its Yangxiaomie lifestyle platform, and its online-to-offline (O2O) auto retail Consumption Guide. Its net profit for 2024 surged nearly 40-fold year-on-year to 147 million yuan ($20.76 million), primarily driven by strong revenue growth from Yangxiaomie. For the first five months of this year, its profit jumped 170% year-on-year to 126 million yuan.

The company raised a modest HK$131 million in gross proceeds from the listing, but most of that was used to pay for listing expenses. After deducting such expenses, it generated just HK$12.37 million in net proceeds from the listing.

By Lau Chi Hang

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