BRIEF: Softcare’s Hong Kong IPO approved by China’s securities regulator

China’s securities regulator has formally registered the Hong Kong listing plan by Softcare Ltd., clearing a key regulatory hurdle for the IPO by the Africa-focused seller of diapers and sanitary pads. The company plans to sell 148 million shares in the listing, according to the registration statement posted last Friday on the website of the China Securities Regulatory Commission.

Softcare filed a preliminary prospectus for the listing with the Hong Kong Stock Exchange in January, followed by an updated document in August.

According to the updated document, the company generated 161.3 million yuan ($22.6 million) in revenue in the first four months of this year, up 15.5% from 139.6 million yuan a year earlier. Baby diapers accounted for 71.8% of its sales during the latest period, while sanitary pads accounted for 18.5%. The company’s profit rose 12.3% to 31.1 million yuan in the first four months of the year from 27.7 million yuan a year earlier.

Softcare controls 17.2% of the African market for baby diapers by revenue, making it the continent’s second-largest player, according to third-party market data in the preliminary prospectus.

By Doug Young

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