IPO Pricing | German Commercial Investment Services received 1.37 times oversubscription, with a price of 1.11 Hong Kong dollars per share.

Futu News, December 16th, announced that on Thursday this week...$DESUN SERVICES (02270.HK)$ Announcement: The company will issue 0.15 billion shares at a price of 1.11 Hong Kong dollars per share, in lots of 2000 shares each, expected to be listed on December 17th.

During the public offering stage, German Commercial Investment Services received approximately 1.37 times oversubscription. The final number of shares allocated for public sale is 15 million shares, accounting for 10% of the total shares offered for public sale (before any exercise of over-allotment options). A total of 2517 valid applications were received, with a 70.01% chance of being allotted one lot, and subscriptions for 2 lots were considered stable.

In addition, the international offering saw a slightly oversubscribed situation, with the final number of shares for public sale being 0.135 billion shares, equivalent to 90% of the total shares offered for public sale (before any exercise of over-allotment options). Futu News has compiled the relevant data in the table below:

The net amount of income of approximately 0.128 billion Hong Kong dollars will be used for the following purposes: approximately 60% will be used for company global strategy investments and acquisitions to expand property management and commercial operation business; approximately 20% will be used for investing in information technology systems and human resources supporting technical systems; approximately 10% will be used for recruiting and training talents; approximately 10% will be used for operating funds and general company expenses.

German business investment services is a property management service and commercial operation integrated service provider. In 2020, based on revenue generated in Chengdu, among all companies providing property management services and commercial operation services in Chengdu, the company ranked fifth with a market share of 0.5%. It is committed to providing property management services and commercial operation services for medium to high-end residential and commercial properties.

As of May 31, 2021, German business investment service has a total managed construction area of approximately 4.2 million square meters, with a total built area of approximately 1.9 million square meters for residential properties under management, accounting for 44.7% of the total managed construction area, and a total built area of approximately 2.3 million square meters for non-residential properties under management, accounting for 55.3% of its total managed construction area.

The company's managed construction area increased from approximately 0.5 million square meters as of December 31, 2018 to approximately 3.8 million square meters as of December 31, 2020, with a compound annual growth rate of approximately 175.7%. The company's contracted construction area increased from approximately 1.3 million square meters as of December 31, 2018 to 6.8 million square meters as of December 31, 2020, with a compound annual growth rate of approximately 128.7%.

In terms of financial situation, in the fiscal years 2018, 2019, 2020, and the first five months of 2021, the company achieved total revenues of RMB 63.964 million, RMB 69.116 million, 0.128 billion, and RMB 89.159 million respectively. The compound annual growth rate from 2018 to 2020 is approximately 41.4%. During the same period, the company recorded net incomes of RMB 31.394 million, RMB 31.043 million, RMB 42.913 million, and RMB 10.003 million respectively. The compound annual growth rate from 2018 to 2020 is approximately 16.9%.

In terms of industry, in 2020, the total revenue of property management service companies in the Sichuan-Chongqing region reached RMB 55.1 billion, with total revenues for residential and non-residential properties being RMB 34.1 billion and RMB 21 billion respectively. By 2025, it is expected that the total revenue of property management services in the Sichuan-Chongqing region will reach RMB 92.4 billion, with a compound annual growth rate from 2020 to 2025 of 10.9%.

Editor/Aurora

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