IPO News | U-Box, a provider of reusable packaging services, has launched its IPO and is expected to be listed on March 9, with a minimum subscription amount of HKD 7,070.60.

Futu Information reported on February 27 that $ALSCO POOLING (02649.HK)$ An announcement was made that the company will offer shares from February 27 to March 4, with plans for a global offering of approximately 20.336 million shares and an expected listing date of March 9.

Company Overview

U-Box is a Chinese provider of reusable packaging services, primarily focusing on serving automotive parts manufacturers and OEMs in the automobile industry. The company mainly offers shared operations, which is a shared model where it manages reusable packaging such as pallets, crates, or containers on behalf of clients. It handles storage, distribution, returns (mainly through subcontracted third-party logistics service providers), cleaning, and maintenance of the reusable packaging on behalf of customers.

The company operates two core business segments: container services and container sales, with the majority of revenue coming from shared operation services within the container services segment. Container services are at the heart of the company's operations, encompassing shared operation services, leasing services, and other value-added services. Shared operation services provide comprehensive solutions for standardized reusable containers, covering design, distribution, recycling, and maintenance. Customers can borrow and return containers on demand and flexibly use different locations for pickup and delivery while the company manages all container operations through warehousing.

On the other hand, leasing services offer fixed-term leases, where the company provides the containers, and customers manage their own logistics operations. The company also offers other value-added services such as logistics transportation, warehouse management, and customer-owned container management to meet diverse customer needs.

Source: Prospectus

Financial Overview

The shared revenue of UleShare increased from RMB 647.6 million for the year ended December 31, 2022, to RMB 794.0 million for the year ended December 31, 2023, and further increased to RMB 837.6 million for the year ended December 31, 2024, representing a compound annual growth rate of 13.7%. The company's gross profit increased from RMB 127.4 million for the year ended December 31, 2022, to RMB 169.9 million for the year ended December 31, 2023, and further increased to RMB 184.1 million for the year ended December 31, 2024, representing a compound annual growth rate of 20.2%.

Source: Prospectus

Use of Proceeds

Regarding the use of proceeds, UleShare expects net proceeds from the global offering to be approximately HKD 205 million (assuming no exercise of the over-allotment option and based on an offer price of HKD 12.5). According to the prospectus, UleShare intends to use the proceeds from the global offering for the following purposes:

Approximately 25% will be used to enhance and upgrade digital systems and platforms; approximately 25% will be used to advance the company’s overseas expansion strategy; approximately 20% will be used to expand the company's service network nationwide; approximately 20% will be used to broaden the application scenarios of the company’s services to other downstream industries through acquisitions; and approximately 10% will be used for general corporate purposes and working capital.