The IPO pricing | Fast Dog Taxi received 4.05 times oversubscription, priced at HK$21.50 per share.

Futu News on June 23, this Thursday$GOGOX (02246.HK)$announced that the company will issue approximately 31.2 million shares at a price of HK$21.50 per share, with 200 shares per hand, expected listing on June 24.

During the public offering phase, Kuaigou Dache received about 4.05 times oversubscription. The final number of shares allocated to the public offering is 3.12 million shares, accounting for approximately 10% of the total number of shares offered (before exercising any over-allotment options). A total of 6788 valid applications were received, with a 100% allotment rate for the first-hand.

In addition, the international offering received a slightly oversubscribed with the final number of shares offered around 28.08 million, approximately 90% of the total shares offered (before exercising any over-allotment options). Futu News compiled the relevant data as shown in the table below:

Based on the offering price of HK$21.50 per share, the company is expected to receive a net amount of approximately HK$567.3 million from the global offering (assuming no exercise of over-allotment options), which will be used for the following purposes:

Approximately 40% will be used to expand the user base and enhance brand awareness; approximately 20% will be used to develop new services and products to enhance monetization capabilities; approximately 20% will be used to seek strategic alliances, investments, and acquisitions in overseas markets; approximately 10% will be used to enhance technology capabilities and research and development capabilities; approximately 10% will be used for working capital and general corporate purposes.

Kuaigou Dache is the leading online intra-city logistics platform in Asia.It operates in more than 340 cities in five countries and regions in Asia (namely mainland China, Hong Kong, Singapore, South Korea, and India), owning and operating two highly recognized and trusted brands: Kuaigou Dache in mainland China and GOGOX in other countries and regions in Asia.

According to data from Frost & Sullivan, based on the total transaction volume in 2021,Kuaigou Dache is the third largest online intra-city logistics platform in mainland China with a market share of 3.2%; it is also the market leader in Hong Kong with a market share of 50.9%.According to the same data source, based on the total transaction volume in 2021, mainland China and Hong Kong together account for approximately 71% of the online intra-city logistics market in Asia.

Kuaigou Dache has built a vibrant ecosystem consisting of millions of consignors and drivers. As of December 31 in 2018, 2019, 2020, and 2021, Kuaigou Dache had approximately 14.5 million, 19.8 million, 24 million, and 27.6 million registered consignors, as well as 1.3 million, 3 million, 4.2 million, and 5.2 million registered drivers. In 2018, 2019, 2020, and 2021, there were 32.4 million, 33.4 million, 27.1 million, and 28.4 million consignment orders completed on the platform, generating a total transaction volume of RMB 3356.9 million, RMB 3313 million, RMB 2694.4 million, and RMB 2676.7 million respectively.

Financial SituationIn terms of financials, the total revenue of the company in the years 2018 to 2021 were RMB 453.1 million, RMB 548.5 million, RMB 530.4 million, and RMB 660.9 million respectively, with a compound annual growth rate of 13.40% from 2018 to 2021. The gross profit for the same period was RMB 104.3 million, RMB 173.1 million, RMB 183.4 million, and RMB 241.7 million respectively, with a compound annual growth rate of 32.31% from 2018 to 2021.

In terms of the industry, The Asian city logistics market has grown rapidly in recent years. By total trade volume, the market size increased from $309.5 billion in 2017 to $422.9 billion in 2021, with a compound annual growth rate of 8.1% from 2017 to 2021. It is expected to further increase to $658 billion in 2026, with a compound annual growth rate of 9.0% from 2022 to 2026.

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