IPO pricing | Beijing Jiaye was subscribed 2.88 times, priced at HK$8.28 per share

Futu News, November 9, this Tuesday$BEIJING JIAYE (02210.HK)$ An announcement was issued. The company issued 366.672 million shares, priced at HK$8.28 per share, and 400 shares per lot. It is expected to be listed on November 10.

During the public sale phase, Beijing Jiaye was subscribed 2.88 times. The final number of shares distributed to the public sale was 3.6672 million shares, accounting for about 10% of the total number of shares offered (before any over-allotment rights were exercised). A total of 6,377 valid applications were received. The first-hand winning rate was 25.07%, and the 5-lot subscription was stable.

Furthermore, the international offering was slightly oversubscribed. The final number of shares offered was 33 million shares, equivalent to about 90% of the total number of shares offered (before any overallotment rights were exercised). Futu Information collates relevant data in the following table:

The net proceeds of approximately HK$247 million will be used for the following purposes: approximately 60% will be used to seek selected strategic investment and acquisition opportunities for property management companies and property management-related service providers; approximately 25% will be used to fund the development of value-added services; approximately 10% will be used to develop and upgrade the company's information technology infrastructure and smart devices; and approximately 5% will be used to supplement the company's working capital and general corporate purposes.

Jingcheng Jiaye is a comprehensive property management service operator that provides diversified property management services to enterprises, institutions, public institutions and residents in the capital all year round. The company is a well-known property management brand in the country. It was the first property management service provider to enter Beijing Hutong Property Management. It undertook property management and related services for influential projects in the market, such as the National Stadium (Bird's Nest), government office buildings, and enterprise groups controlled by the State Assets Administration Commission.

According to data from the Central Index Institute, in terms of overall strength, the company ranked 24th among China's top 100 property service enterprises in 2021; in terms of total revenue in 2020, the company ranked 9th among the 2021 China Top 100 Property Service Companies headquartered in the Beijing-Tianjin-Hebei region.

In terms of financial data, the company's total revenue from FY2018 to FY2020 was RMB 918 million, RMB 1,045 million and RMB 1,091 million respectively, with a compound annual growth rate of 9%; net profit of RMB 41.377 million, RMB 51.119 million and RMB 687.57 million was recorded during the same period, with a compound annual growth rate of 28.9%. In the first four months of 2021, the company recorded total revenue of 478 million yuan and net profit of 38.373 million yuan.

On the industry side, new industries, new businesses and new models in the Beijing-Tianjin-Hebei region have been growing. It is expected that the acceleration of construction of key projects will accelerate the transformation of potential property management projects, which will facilitate the expansion of leading property service providers in the growth of business scale.

From 2018 to 2020, the average residential property rates charged by China's top 100 property service companies in the Beijing-Tianjin-Hebei region were RMB 2.24, RMB 2.19 and RMB 2.17 per square meter per month, respectively; the average property management fees for non-residential properties were RMB 6.04, RMB 5.93 and RMB 5.94 per square meter per month, respectively.

Northern/Aurora

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