BRIEF: Guofu Hydrogen launches IPO to raise up to $56 million

Hydrogen storage and transportation equipment maker Jiangsu Guofu Hydrogen Energy Equipment Co. Ltd. (2582.HK) launched it Hong Kong IPO on Thursday, aiming to sell 6 million shares, with 10% reserved for local Hong Kong investors. It set a price range of HK$65 to HK$73 per share.

Shares will sell in lots of 100, translating to an admission fee of HK$7,373.62 for investors. The listing could raise up to HK$438 million ($56 million).  The public subscription period closes on Nov. 12, with trading set to debut Nov. 15.

Guofu Hydrogen’s revenue has continued to grow over the past three years, rising from nearly 330 million yuan in 2021 to 520 million yuan last year. However, it has lost money throughout the period, with losses over the three years totaling about 238 million yuan.

The company lost another 96.55 million yuan in the first five months of this year. Its gross profit margin for the period was only 2%, and its net debt-to-equity ratio stood at close to 100%.

By Lau Chi Hang

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