IPO | Wanwuyun will be offering shares now and is expected to be listed on September 29th

According to Futu News on September 19,$ONEWO (02602.HK)$The stock offering is ongoing. From September 19 to September 22, the company plans to issue approximately 116.7 million shares, including a public sale of about 11.67 million shares and an international sale of approximately 105 million shares, with an issue price of HK$47.1-52.7 per share, and 100 shares per lot. It is expected to be listed on September 29.

Wanwuyun is a leading property management service provider in China. According to Frost & Sullivan, in terms of revenue from basic property management services, Wanwuyun ranked first in the Chinese property management service market in 2021, accounting for 4.28% of the market share.

Relying on brand advantages and service quality, Wanwuyun's business scope has expanded to businesses other than property management, and has become a leading service provider with a growth model driven by collaboration between communities, commercial enterprises and urban space business systems, providing services for diverse properties such as residential communities, workplaces, and public buildings, as well as a broad customer base covering owners, enterprises and other institutional customers.

With R&D investments, Wanwuyun has developed AIoT and BPaaS solutions aimed at digitizing workflows, mobilizing resources, and improving the efficiency of the space served by the company. As service products and specialized technology intertwine and further integrate, the company is fully prepared to achieve economies of scale and seize opportunities arising from close geographical proximity. In terms of geographical focus, the company is committed to providing quality services to customers in high-tier cities with strong economic foundations.

On the financial side, from 2019 to 2021, the company's total revenue was RMB 13.9 billion, RMB 18.1 billion, and RMB 23.7 billion, respectively, with a compound annual growth rate of 30.46%; gross margins of 17.7%, 18.5%, and 17.0% for the same period; and net interest rates for the same period were 7.5%, 8.4%, and 7.2%, respectively.

The property management services market in China is highly competitive and highly fragmented. In 2021, the revenue of Chinese property management service companies mainly came from basic property management services, accounting for about 74.4%. As services become more diversified, the share of value-added services in total revenue from property management services increased from 17.2% in 2016 to 25.6% in 2021, and is expected to reach 35.0% in 2026. Revenue from value-added services grew at a CAGR of 21.4% from 2021 to 2026.

In terms of funding, the company plans to use the net proceeds of the global sale of approximately HK$5.7 billion for the following purposes: about 35% to fund the development of concentration strategies in selected streets and the implementation of the “Wanwuyun Street” model across the country; about 25% to invest in the development of the company's AIoT and BPaaS solutions; about 20% to acquire most of the interests of three to five value-added service providers and upstream and downstream supply chain service providers in the industry to incubate the Wanwuyun ecosystem; about 10% for operating capital and the company's general use.

In terms of cornerstone investors, the company has separately signed cornerstone investment agreements with six cornerstone investors. The six cornerstone investors are China Chengtong, UBS AM Singapore, HHLR Fund L.P., YHG Investment L.P., CEPHE, Temasek, and Athos Asia Event Driven Master Fund. Cornerstone investors have agreed to subscribe at the sale price for a total of approximately US$272 million to US$280 million, subject to certain conditions.

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