XTEP International Listings In Hongkong Today

XTEP, a sporting goods company in the mainland, is officially listed on the HKEx today.

The results of the prospectus show that XTEP's public offering was only 1 times oversubscribed, and it was not the same as last year when the market was hot.

In the end, XTEP set a price limit of HK $4.05 in the range of offering shares, and most of the consumer companies that started the listing process recently chose the lower limit price.

XTEP's public offering partly received about 6519 subscription applications, totaling 129 million shares, equivalent to 2 times of the 55 million shares of the subscribed shares.

This means that the winning rate of one hand (500 shares) is 80.1%.

With the total sale of 550 million new shares, XTEP will raise HK $2 billion 220 million by IPO, with a net capital raising of HK $2 billion 67 million.

The company previously indicated that 22% of the fund-raising amount was used for media advertising and brand promotion activities; 17% used to expand and improve the distribution network of Companies in Hunan, Fujian, Heilongjiang, Jilin, Liaoning, Guangdong, Zhejiang and Sichuan; 19% to expand the company's garment production plants and upgrade production machines; 24% to purchase brands and to launch new investment projects; 7%, to recruit professional designers, employ design and consultancy agencies, improve laboratories, enhance design and technology capabilities; about 8% were used for working capital and general corporate purposes; 3% used to upgrade the existing asset management system of the company.

A noteworthy phenomenon is that not only is XTEP priced at the lower limit of its offering, but the mainland consumer enterprises recently launched in Hongkong have basically set the following price limits, or there may be a lower price limit for IPO.

According to sources, Baosheng, a sporting goods retailer in the mainland, has been listed for 6 days. The price range previously announced is HK $2.93 to HK $3. 5, while Baosheng's final price may be at the lowest level of HK $3.05.

To sell 823 million 400 thousand shares, Baosheng's listing will raise about HK $2 billion 511 million.

Baosheng said its listed capital raising will mainly be used to expand the retail network, repay bank loans and make strategic investments.

By the end of last year, Baosheng operates 1324 retail outlets directly in the mainland and operates 79 direct retail outlets in Hongkong and Taiwan.

Its distribution sports brands include Nike, Adidas, Lining, Kappa, Converse, Reebok and so on.

In addition to Baosheng, the listed jewelry production and sales company Ya Tian Ni is also priced at HK $2.22 below the offer interval.

Yesterday, Ya Tian Ni closed at HK $2.18, still slightly below the offer price.

On the other hand, the price of XTEP's dark plate was HK $3.94, which was 2.71% lower than that of HK $4.05.