BRIEF: AuGroup to raise HK$470 million in Hong Kong IPO
AuGroup (Shenzhen) Cross-border Business Co. Ltd. (2519.HK), a cross-border e-commerce platform specializing in household products, launched its Hong Kong IPO on Thursday, aiming to sellnearly 30 million shares, with about 10% reserved for local investors. It set a price range of HK$14.56 to HK$15.60
Shares will sell in lots of 300, translating to an admission fee of HK$4,727.20 for investors. The listing could raise up to HK$470 million ($60 million). The public subscription period ends on Nov. 5, with a trading debut set for Nov. 8.
In 2021, the company was banned by American e-commerce giant Amazon for posting fake reviews to boost its sales. The incident caused the company’s revenue to drop by 22% to 7.1 billion yuan in 2022, setting back its listing plan.
The company’s business has gradually picked up since then after it made adjustments. Last year’s revenue increased by 22% to 8.68 billion yuan, and the figure rose 17% year-on-year to 2.83 billion yuan in the first four months of this year.
By Lau Chi Hang
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