First day of the IPO | Shell-W officially listed on the Hong Kong Stock Exchange with an opening price of HK$30.954

Futu News reported on May 11 that it is an integrated real estate trading and service platform$shell-W (02423.HK) $Officially listed on the Hong Kong Stock Exchange, it became the first Chinese securities company to be double listed in Hong Kong by “introduction method”. Shares are traded in units of 10 Class A common shares per lot.The opening price on the first day was HK$30.954, with a total market capitalization of approximately HK$117.415 billion.

According to Futu data, the company's American Depositary Shares$seashell (BEKE.US) $Yesterday, the NYSE closed at $11.83, up 4.05%, equivalent to HK$30.85. Based on the overnight closing price of US stocks, the discount is about 0.3% from the opening price of Hong Kong stocks.

Company Overview

Shell is a leading online and offline integrated real estate transaction and service platform. It pioneered the establishment of platform infrastructure and standards in China, and is committed to reshaping the operating model of service providers, so as to more efficiently provide consumers with other real estate transaction services such as second-hand and new housing transactions, housing leasing, and home improvement.

Shell was listed on the New York Stock Exchange on August 13, 2020. As of the close of trading on May 4, $BEKE.US (BEKE.US) $ closed at $14.41, with a total market value of US$17.166 billion.

In 2021, Shell's platform completed more than 4.5 million real estate transactions, with a total transaction volume of RMB 3,853.5 billion. According to the Insight Consulting Report, in terms of total transaction volume, the company is the largest real estate transaction and service platform in China, and also ranks among the top three commercial platforms in the world.

Shell owns and operates Chainjia — China's leading real estate brokerage brand and an important part of the Shell platform. Since the establishment of Chainjia in 2001, the company has accumulated more than 20 years of operating experience.

In terms of financial conditions, the company's total revenue from 2019 to 2021 was 46.01 billion yuan, 70.48 billion yuan and 80.75 billion yuan, respectively, with a compound growth rate of 32.48%. Net profit for the same period was 2.18 billion yuan, 2.78 billion yuan, and -525 million yuan.

According to the Insight Consulting Report, from 2016 to 2021, the penetration rate of brokerage services in real estate transactions in China increased from 43.2% to 49.8% in terms of total transaction volume, and is expected to increase further to 61.6% in 2026.

The total volume of real estate transactions generated through brokerage services in China increased from RMB 7.6 trillion in 2016 to RMB 12.7 trillion in 2021, with a compound annual growth rate of 10.8%. It is expected to reach RMB 19.4 trillion in 2026, with a compound annual growth rate of 8.8%.

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