New Stock Offering | Noah Holdings starts its IPO today and is expected to be listed on July 13.

Futu News, June 30th: Thursday of this week.$NOAH HOLDINGS (06686.HK)$Announcement: A stock offering will take place from June 30 to July 6, with the company planning to issue 1.1 million shares, including 0.11 million shares for public offering and 0.99 million for international offering, at an issue price not exceeding HKD 307 per share with a lot size of 20 shares. It is expected to be listed on July 13.

The company is a leading high-net-worth wealth management service provider in China with global asset management capabilities. According to Frost & Sullivan data, based on total revenue in 2021, the company is the 8th largest wealth management service provider in China (holding about 3.7% market share in the high-net-worth wealth management service market in China) and also the largest independent wealth management service provider in China (holding about 21.5% market share in the independent high-net-worth wealth management service market in China).

Operating in 84 cities in mainland China as well as in Hong Kong, Taiwan, New York, Silicon Valley, and Singapore, the company's domestic and overseas businesses accounted for 76.6% and 23.4% of total revenue in 2021 respectively.

Through a global network of over 1,300 financial planners, the company distributed RMB 97.2 billion ($15.3 billion) of investment products to 42,764 clients in 2021, an increase of 25.0% from 34,213 clients in 2020. As of December 31, 2021, the asset management scale reached RMB 156 billion ($24.5 billion).

In terms of financial condition, from 2019 to 2021, the company's total revenue was RMB 3.413 billion, RMB 3.325 billion, and RMB 4.327 billion, with a compound growth rate of 12.6%.

The net income in 2019 and 2021 were RMB 0.864 billion and 1.306 billion respectively, while in 2020 a net loss of RMB 0.744 billion was recorded. The net loss in 2020 was primarily attributed to a non-cash settlement expense of RMB 1828.9 million related to the Chengxing incident.

In terms of the industry, the investable assets for high-net-worth individuals in China increased from RMB 2.9 billion in 2016 to RMB 5.3 billion in 2021, with an expected accelerated compound annual growth rate of 10.5% to reach RMB 8.7 billion by 2026.

The total revenue generated by high-net-worth wealth management service providers in 2021 was RMB 117.7 billion, and it is projected to continue growing at an accelerated compound annual growth rate of 9.0% from 2021 to 2026, reaching RMB 181.5 billion by 2026.

In 2021, the total revenue generated by independent high-net-worth wealth management service providers was RMB 20 billion, and it is expected to show strong growth with an accelerated compound annual growth rate of 10.8% from 2021 to 2026, reaching RMB 33.4 billion by 2026.

Regarding the use of funds, the company plans to use the net proceeds from the global offering as follows: approximately 35% for further expanding the company's wealth management business; about 15% for further expanding the company's asset management business; approximately 20% for selective potential investments; 10% for internal technology research and development investments across the company's business lines; 10% for expanding international operations; and about 10% for general corporate purposes.

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