IPO News | Lexin Outdoor, the 'first fishing gear stock,' launches its IPO, with plans to list on February 10. The minimum subscription amount is HKD 6,186.78.

Futu Information reported on February 2 that $RIDGE OUTDOOR (02720.HK)$ the company announced the offering from January 31 to February 5. It plans to offer approximately 28.205 million shares globally and expects to be listed on February 10.

Company Overview

Lexin Outdoor is a global leader in the fishing gear industry. Over the past 30 years, the company has focused on fishing gear as its core business, building a diversified portfolio of high-quality products based on product design and development, supply chain, and quality control, creating a strong competitive edge in the fishing gear market. As a well-established global manufacturer of fishing gear, the company is able to seize market opportunities through extensive market insights and resources.

With over 30 years of deep involvement in the fishing equipment industry, the company has accumulated extensive market insights and strategically expanded its own brand business. In 2017, the company acquired Solar, a well-known UK carp fishing brand. Established in 1987, Solar is one of the oldest carp fishing brands in the UK. With the company's full support, Solar’s sales in 2024 have grown to about three times compared to 2018.

Lexin Outdoor has established long-term and stable cooperative relationships with globally renowned outdoor products brands, particularly fishing tackle brands. The company's customer network includes globally renowned outdoor products retailers such as Decathlon, globally recognized fishing brands like Rapala VMC and Pure Fishing, prominent UK fishing brands such as Fox, Nash, Trakker, and Preston, as well as well-known US outdoor products companies like Ardisam.

Financial Overview

In 2022, 2023, and 2024, and for the eight months ended August 31, 2024, and 2025, Lexin Outdoor's total revenue was RMB 818.4 million, RMB 463.3 million, RMB 573.5 million, RMB 391.0 million, and RMB 460.3 million, respectively. The company's gross profit during each period was RMB 190.1 million, RMB 123.2 million, RMB 152.7 million, RMB 102.5 million, and RMB 127.5 million, respectively.

Source: Prospectus

Use of Proceeds

Regarding the use of proceeds, Lexin Outdoor expects the net proceeds from the global offering to be approximately HKD 272 million (assuming the over-allotment option is not exercised, based on the mid-point offer price of HKD 11.75). According to the prospectus, Lexin Outdoor intends to allocate the funds raised from the global offering as follows:

Approximately 45% will be used for brand development and promotion; around 25% will be allocated for product design and development, as well as establishing a global fishing tackle innovation center; about 20% will be utilized for upgrading production facilities and enhancing the company's digital capabilities; roughly 10% will serve as working capital and for general corporate purposes.