IPO Pricing | SF Express Tongcheng was subscribed 2.93 times, priced at HK$16.42 per share

Futu News, December 13, this Monday$SF INTRA-CITY (09699.HK)$ According to the announcement, the company will issue approximately 131 million shares, priced at HK$16.42 per share, and 200 shares per lot. It is expected to be listed on December 14.

At the public sale stage, SF Express Tongcheng was subscribed about 2.93 times. The final number of shares distributed to the public sale was 13.118,200 shares, accounting for about 10% of the total number of shares offered (before any overallotment rights were exercised). A total of 20,741 valid applications were received. The winning rate for the first hand was 50%, and the third round of subscription was stable.

Furthermore, the international offering was slightly oversubscribed. The final number of shares offered was approximately 118 million shares, equivalent to about 90% of the total number of shares offered (before any overallotment rights were exercised). Futu Information collates the relevant data in the following table:

The net proceeds of approximately HK$2,031 billion will be used for the following purposes: approximately 35% is expected to be used for R&D and technical infrastructure; about 20% is expected to expand service coverage, including scenario coverage and geographical coverage, and capacity pool expansion; about 20% is expected to fund potential strategic acquisitions and investments in upstream and downstream businesses in the industry value chain to supplement and expand business operations; about 15% is expected to be used for marketing and brand promotion; and about 10% is expected to be used for working capital and general corporate purposes.

SF Express Tongcheng was initially a division of SF Holdings Group. Since 2019, it has achieved independent and corporate operation. The company uses a full-scenario business model to cover all distribution scenarios for various products and services. The company's services cover a wide range of scenarios, from mature scenarios (such as food and beverage takeout) to incremental scenarios (such as retail in the same city, near-field e-commerce and near-field services).

According to iResearch's report, the company has rapidly grown into the largest third-party real-time delivery service platform in China. In the three months ended March 31, 2021, its market share reached 11.1% in terms of order volume.

In terms of financial data, the company's total revenue from FY2018 to FY2020 was RMB 993 million, RMB 2.07 billion, and RMB 4.843 billion respectively, with a compound annual growth rate of 120.8%; net losses of RMB 328 million, RMB 470 million and RMB 758 million were recorded during the same period. In the first five months of 2021, the company recorded total revenue of 3,046 billion yuan, an increase of about 113% over the previous year, and a net loss of 353 million yuan.

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