IPO News | "Container-related service provider" Yongkang Holdings has launched its IPO, targeting a listing on July 13, with a board lot subscription amount of HK$5,414.05

Futu News, June 30:$EKH (02523.HK)$Announced that the bookbuilding period will run from June 30 to July 8, with the company planning a global offering of approximately 51.6 million shares, and listing is expected on July 13.

Company Overview

The company provides a range of container-related services to clients in ASEAN and China, including storage and handling of empty containers, maintenance and repair of refrigerated containers, container transportation, sales and trading of containers and container components, as well as acceptance and inspection services for newly built containers.

The company operates and manages its business primarily through three main segments: (i) container depot operations; (ii) warehousing and container freight stations; and (iii) container sales and new container inspections. Additionally, the company offers freight forwarding services alongside its container depot operations in Qingdao, China, to maintain competitiveness and support its local depot business.

Financial Summary

For the years ended December 31, 2023, 2024, and 2025, the company’s revenue was approximately SGD 155.5 million, SGD 165.0 million, and SGD 149.2 million, respectively, while the Group’s reported net profit for the same periods was approximately SGD 8.4 million, SGD 11.6 million, and SGD 13.3 million, respectively. Gross profit for the years ended December 31, 2023, 2024, and 2025 was approximately SGD 46.9 million, SGD 43.2 million, and SGD 44.0 million, with gross margins of approximately 30.2%, 26.2%, and 29.5%, respectively.

Use of Proceeds

Regarding the use of proceeds, Yongkang Holdings expects the net proceeds from the global offering to be approximately HK$97.6 million (assuming the over-allotment option is not exercised and based on the mid-point of the offering price range at HK$2.44 per share). According to the prospectus, Yongkang Holdings intends to allocate the proceeds from the global offering for the following purposes:

Approximately SGD 10.0 million (equivalent to approximately HK$60.6 million) will be used for the construction and development of MegaDepot. Approximately SGD 4.6 million (equivalent to approximately HK$27.9 million) will be used to repay interest expenses on loans and/or bank borrowings incurred to finance the construction costs of MegaDepot. Approximately SGD 1.5 million (equivalent to approximately HK$9.1 million) will be used as working capital for the Group.

Further reading:Yongkang Holdings Prospectus

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Editor/Vincent

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