BRIEF: Jihong Group seeks up to $93 million in Hong Kong IPO
Cross-border social e-commerce and paper packaging company Xiamen Jihong Co. Ltd. (2603.HK, 002803.SZ) launched its Hong Kong IPO on Monday, aiming to sell 67.91 million shares priced between HK$7.48 and HK$10.68. The listing could raise up to HK$725 million ($93 million), with subscriptions set to close on Thursday and trading to begin next Tuesday.
Already listed on the Shenzhen Stock Exchange since 2016, Jihong ranked first in China’s paper-based fast-moving consumer goods (FMCG) packaging market in 2024 with 1.2% of the market, according to industry research firm China Insights Industry Consultancy.
The company reported revenues of 5.38 billion yuan in 2022, 6.69 billion yuan in 2023, and 5.53 billion yuan last year, with net profits of 170 million yuan, 330 million yuan, and 180 million yuan over that period, respectively.
The IPO price range is notable for its broad width. A pricing at the lower end would yield just HK$510 million total proceeds, or HK$200 million less than the upper end, representing a valuation gap of up to 42%.
By Lau Chi Hang
To subscribe to Bamboo Works weekly free newsletter, click here
