IPO Pricing | JL Mag Rare-Earth achieved a 2.39 times subscription, priced at HKD 33.8 per share.

Futu News on January 13th, Thursday$JLMAG (06680.HK)$Announcement: The company issued approximately 0.1255 billion shares, priced at HKD 33.8 per share, with a board lot of 200 shares, expected to be listed on January 14th.

During the public offering stage, JL Mag Rare-Earth achieved a subscription ratio of approximately 2.39 times. The final number of shares allocated to the public offering is 25.0936 million shares, accounting for approximately 20% of the total shares offered (before any exercise of oversubscription rights). A total of 18,275 valid applications were received, with a 100% allotment rate for one board lot.

In addition, the international offering was oversubscribed, and the final number of shares offered is approximately 0.1 billion shares, equivalent to approximately 80% of the total shares offered (before any exercise of oversubscription rights). Futu News has compiled the relevant data in the following table:

In terms of fundraising purposes, the company plans to use the net proceeds from the global offering of approximately 4.045 billion yuan for the following purposes: approximately 35% for the construction of the Ningbo production base; approximately 25% is expected to be used for potential acquisitions by the end of 2023 to expand the company's global industry chain layout; approximately 20% is expected to be used for the company's research and development; approximately 10% will be allocated to repay the loans for the construction of the Baotou production base project; and approximately 10% is expected to be used for the company's working capital and general corporate purposes.

The company is a leading manufacturer of high-performance rare earth permanent magnets. According to Frost & Sullivan, the company had a market share of approximately 14.5% in high-performance rare earth permanent magnets production in 2020, ranking first in the world. According to Frost & Sullivan, the company produced 4,111 tons of high-performance rare earth permanent magnets using grain boundary diffusion ("GBD") technology in 2020, ranking first in the GBD rare earth permanent magnets market with a market share of approximately 21.3%.

The company was listed on the National Equities Exchange and Quotations (NEEQ) from December 2015 to January 2018.$Jl Mag Rare-Earth (300748.SZ)$Since September 2018, the company has been listed on the ChiNext board of the Shenzhen Stock Exchange.

Since its establishment, the company has been focused on the research, production, and sales of high-performance neodymium iron boron rare earth permanent magnet materials ("NdFeB permanent magnet materials") for global new energy and energy-saving and environmentally friendly fields. The company's products are widely used in new energy vehicles, auto parts, permanent magnet wind generators, energy-saving frequency conversion air conditioners, and other industries.

In terms of financial condition, the company's revenue for the years 2018 to 2020 was 1.28 billion yuan, 1.63 billion yuan, and 2.29 billion yuan, respectively. The revenue for the first half of 2021 was 1.77 billion yuan, a year-on-year increase of 93%. The net income for the years 2018 to 2020 was 0.15 billion yuan, 0.16 billion yuan, and 240 million yuan, respectively. The net income for the first half of 2021 was 0.22 billion yuan, a year-on-year growth of 141%.

In terms of the industry, China's production of high-performance neodymium iron boron rare earth permanent magnets reached 0.0462 million tons in 2020, and is expected to reach 0.1051 million tons by 2025, with a compound annual growth rate of 17.9% from 2020 to 2025. With the increasing demand for rare earth permanent magnet materials due to carbon neutrality goals, the further development of the new energy vehicle industry and green and low-carbon industries, and favorable policies, this market is expected to grow rapidly in the future.

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