IPO Pricing | Yu Jian Xiao Mian goes public today, with 425.97 times subscription, priced at HKD 7.04 per share, and a one-lot allocation rate of 2%.

Futu News reported on December 5th, $XIAO NOODLES (02408.HK)$ The allocation results were announced, with the price set at HKD 7.04 per share. A total of 97,364,500 shares were issued, with each lot consisting of 500 shares. The company officially listed today.

During the public offering phase, Yu Jian Xiao Mian received 425.97 times subscription. The final number of shares allocated under the public offering was 9,736,500, accounting for approximately 10% of the total shares offered. A total of approximately 61,057 valid applications were received, among which 9,590 applications were processed. The approximate percentage of shares allocated to one-lot applicants relative to the total shares applied for was 2%.

In addition, during the international placement phase, Yu Jian Xiao Mian received 4.99 times subscription. The final number of shares allocated in the international offering was 87,628,000, equivalent to 90% of the total shares offered. Futu News has compiled the relevant data in the table below:

Company Profile

Yujian Xiaomian, established in 2014, entered the market with its uniquely flavored Chongqing noodles and has since developed four signature products: Red Bowl Pea Noodles, Golden Bowl Sour and Spicy Vermicelli, Old Sesame Wontons, and Mini Hot Pot Series. As of the latest practicable date, the company’s restaurant network includes 451 restaurants across 22 cities in mainland China and 14 restaurants in the Hong Kong Special Administrative Region. With strong growth momentum, as of the latest practicable date, the company has 115 new restaurants under pre-opening preparation. Most of its restaurants are located in eastern and southern China, with over half situated in Guangdong Province. According to Frost & Sullivan, in terms of total Gross Merchandise Value (GMV) in 2024, the company ranks as the fourth-largest operator of Chinese noodle shops in China, holding a market share of 0.5%.

Financial Overview

From 2022 to 2024, the company's total revenue increased from RMB 418 million to RMB 1.154 billion. In terms of net profit, the company incurred a loss of RMB 35.973 million in 2022, achieved a net profit of RMB 45.914 million in 2023, and further increased it to RMB 60.7 million in 2024. In the first half of 2025, the company generated revenue of RMB 703 million; the adjusted net profit reached RMB 52.175 million.

Use of Proceeds

Regarding the use of proceeds, Yu Jian Xiao Mian expects net proceeds from the global offering to be approximately HKD 685 million (based on an offer price of HKD 7.04). According to the prospectus, Yu Jian Xiao Mian intends to allocate the proceeds raised from the global offering for the following purposes:

Approximately 60.0% for expanding the restaurant network, broadening geographic coverage, and deepening market penetration; approximately 10.0% for enhancing the group’s information technology capabilities by upgrading the technology and digital systems across the entire restaurant network; approximately 10.0% for brand building and increasing customer loyalty; approximately 10.0% for strategic investments in potential companies in the upstream food processing industry; and approximately 10.0% for general corporate purposes and working capital.

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Editor/Afina

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