IPO Pricing | Huaxida listed today, received over 1,900x subscription, priced at HK$32.8 per share, with a grey-market profit of HK$3,070 per lot

Futu News, May 27:$SDMC (00901.HK)$announced its allotment results, pricing shares at HK$32.8 each, issuing a total of 19.2073 million shares, with a board lot size of 100 shares, officially listing today.

On the previous trading day, Huaxida's shares rose more than 93% in the grey market, closing at HK$63.5. With a board lot of 100 shares, each lot generated a profit of HK$3,070, excluding fees.

During the public offering phase, Huaxida received 1,971.99 times subscription. The final number of shares allocated to the public offering was 1.9208 million shares, representing approximately 10% of the total offering. A total of approximately 177,200 valid applications were received, with about 17,058 applications processed. The percentage of applicants who applied for one lot and were allotted shares was approximately 2% of the total number of shares applied for.

Additionally, during the international placement phase, Huaxida received 2.23 times subscription. The final number of shares allocated to the international offering was 17.2865 million shares, equivalent to 90% of the total offering. Futu News compiled the relevant data in the table below:

Company Overview

The company is a smart home product provider targeting enterprise clients, committed to enhancing home application experiences through intelligent technology. Its smart home offerings include both hardware and software products. During the performance record period, the majority of its revenue came from selling hardware products, specifically digital video equipment and network communication devices. Smart home products refer to an integrated home ecosystem that connects and manages all smart devices in the house, enabling full-home network coverage and device interaction.

Unlike smart home providers that sell their own branded products directly to consumers, this company targets enterprise customers. It develops and sells digital video equipment and network communication devices under customer brands while also providing system platforms and services.

Financial Summary

In 2023, 2024, and 2025, the company recorded revenues of RMB 2,366.9 million, RMB 2,540.9 million, and RMB 3,367.7 million, respectively; gross profits were RMB 500.5 million, RMB 482.9 million, and RMB 656.1 million for the respective years. In 2023, 2024, and 2025, the company’s overall gross profit margins were 21.1%, 19.0%, and 19.5%, respectively.

Use of Proceeds

Regarding the use of proceeds, Huaxida expects net proceeds from the global offering to be approximately HK$570 million (based on an offer price of HK$32.8 per share). According to the prospectus, Huaxida intends to allocate the proceeds from the global offering to the following purposes:

Approximately 25% of the net proceeds will be used over the next three years to enhance the company's market position and develop new products; approximately 35% of the net proceeds will be allocated over the next three years to applying AI technology in home scenarios; approximately 20% of the net proceeds will be used for global expansion over the next three years; approximately 10% of the net proceeds will be allocated to investing in peer market participants or upstream and downstream market participants with strong potential in areas such as (but not limited to) artificial intelligence and algorithms; and approximately 10% of the net proceeds will be used as working capital and for general corporate purposes.

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Editor/Vincent

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