XTEP International IPO Pricing At The Lower Limit

In May 28th, reporters learned that XTEP international, the mainland sporting goods dealer to be listed in Hongkong (Hongkong exchange code: 1368), will be priced at HK $4.05 per share, which is the lower limit of HK $4.

According to the expected profit of the company in 2008, the corresponding price earnings ratio is 17.1 times.

XTEP international is expected to issue 550 million new shares, raising about HK $2 billion 230 million.

The issue of new shares accounts for 25% of the enlarged share capital.

Fewer than 10% of the companies that completed IPO in the Hongkong market this year could be priced at the high end, contrary to the IPO situation in Hong Kong last year.

Sources told the "finance and economics" reporter that the decision to lower the price on the lower limit of the offering interval was made by XTEP international through the international road show and the public offering of Hongkong to understand investors' response and reference to the market's recent trend.

At present, the international placement of the IPO has been fully subscribed, and the retail subscribers have been over subscribed 2 times to three times.

XTEP international started its roadshow in mid May, when shares of similar companies Lining (Hongkong exchange code: 2331) and Anta (Hongkong exchange code: 2020) fell with the big market.

In May 28th, Lining's closing price was HK $22.20, with an expected price earnings ratio of 33 times. Anta's closing price was HK $8.6, and the P / E ratio was 26 times.

XTEP international was formerly an original equipment manufacturer (OEM) enterprise founded by Chairman and CEO Ding Shui Bo in 1999. In 2002, XTEP began to produce sports apparel products such as sports shoes, clothing and accessories.

In 2007, XTEP brand accounted for 3.4% of China's sporting goods market, accounting for 17% of the market share of fashion sports products.

In November 2006, the company signed a concession agreement with Disney of the United States to sell Disney sports series brand in China.

Carlyle and XTEP international signed an agreement in June 2007. Carlyle's two investment funds subscribed to XTEP international shares at a total cost of 220 million yuan.

After the completion of the IPO, Carlyle's two investment funds will hold 6.9% and 0.3% of XTEP International's shares respectively, and these shares will be closed for half a year.

Ding Shuibo actually owns 64.5% of the shares in the listed company.

2007, XTEP's international net profit is 220 million yuan.

JP Morgan's research report predicts that between 2008 and 2010, the annual compound growth rate of XTEP International's turnover and net profit is 42%.

JP Morgan and UBS are the sponsors of XTEP international listing.

XTEP international is expected to register on the Hongkong stock exchange in June 3rd.