IPO News | 'Thermal Shrinkage Material and Communication Cable Product Provider' Woer Advanced Materials launches its public offering, with a planned listing on February 13. The subscription amount for one lot is HKD 4,058.53.

Futu Information reported on February 5 that $WOER (09981.HK)$ the company announced the launch of its IPO from February 5 to February 10, with a plan to offer approximately 140 million shares globally and an expected listing date of February 13.

Company Overview

Woer Advanced Materials is one of the largest providers of thermal shrinkage materials and communication cable products globally. In recent years, it has experienced rapid growth driven by the strong expansion of high-speed data communication and power transmission. Based on advanced self-developed patented technology, the company was the first in the industry to introduce premium products and achieved success in technology commercialization. It owns several well-known brands such as WOER and LTK, enjoys excellent customer reputation, and is highly trusted by clients.

The main businesses of Woer Heat-Shrink Material include: electronic communication business, involving communication cable products (including high-speed copper cables, consumer and industrial cables), as well as the development, manufacturing, and sales of electronic materials; power transmission business, involving new energy vehicle power transmission products (including new energy vehicle charging products and power battery safety protection products), as well as the development, manufacturing, and sales of cable accessories; and other businesses, mainly including wind power generation. In particular, during the record period, the company's heat shrink material sales accounted for the vast majority of its electronic materials revenue.

Financial Overview

According to financial reports prepared in accordance with International Financial Reporting Standards, for the years 2022, 2023, and 2024, as well as the nine months ended September 30, 2025, Woer Heat-Shrink Material's operating revenues were RMB 5,336.6 million, RMB 5,718.8 million, RMB 6,920.1 million, and RMB 6,076.7 million, respectively; net profits were RMB 660.2 million, RMB 757.7 million, RMB 920.5 million, and RMB 883.3 million, respectively.

For the years 2022, 2023, and 2024, as well as the nine months ended September 30, 2025, the company’s research and development expenses were RMB 305.8 million, RMB 310.0 million, RMB 348.7 million, and RMB 325.7 million, accounting for 5.7%, 5.4%, 5.0%, and 5.4% of the respective year/period revenues.

Source: Prospectus

Use of Proceeds

Regarding the use of proceeds, Woer Heat-Shrink Material expects the net proceeds from the global offering to be approximately HKD 2.734 billion (assuming the over-allotment option is not exercised, calculated at the maximum offer price of HKD 20.09). According to the prospectus, Woer Heat-Shrink Material plans to use the proceeds from the global offering for the following purposes:

Approximately 45% will be used to diversify the product portfolio and upgrade products to expand the business scope and increase market share and penetration, thereby consolidating the company's leading position in the electronic communication and power transmission industries; approximately 27% will be used to expand the global business footprint and increase production capacity in China and Malaysia to meet the growing demand from rapidly expanding overseas markets; approximately 18% will be used for potential strategic investments and/or acquisitions; and approximately 10% will be allocated for working capital and general corporate purposes.