IPO News | 'Contextual Insurance Tech Firm' Baige Online has launched its IPO, planning to list on June 29, with a board lot subscription amount of HK$4,096.91

Futu News, June 18:$BAIGE DIGITAL (02672.HK)$The company announced that its IPO will run from June 18 to June 24. It plans to globally offer approximately 33,344,400 shares and expects to list on June 29.

Company Overview

The company is an insurtech firm primarily engaged in providing technology-enabled insurance intermediary services to contextual partners and insurance companies. It generates revenue through insurance transaction services, precision marketing and digital solutions, and TPA (Third-Party Administrator) services. Under its insurance transaction services segment, the company's core business involves distributing contextual insurance products to end policyholders. These products are underwritten by insurance companies, from which the company earns commission income.

The company collaborates with insurers and contextual partners on the design and customization of insurance products. Contextual insurance typically refers to tailored, short-term, or low-premium insurance products designed for specific scenarios and needs, offering policyholders targeted coverage. These products are highly flexible, feature short coverage periods but broad protection scopes, and can penetrate diverse everyday life scenarios to meet situational protection demands.

Financial Summary

The company’s total revenue increased by 38.5% from RMB 659.9 million for the year ended December 31, 2023, to RMB 914.2 million for the year ended December 31, 2024, and further rose by 34.2% to RMB 1,227.1 million for the year ended December 31, 2025. Commission income amounted to RMB 535.9 million, RMB 825.3 million, and RMB 821.2 million in 2023, 2024, and 2025, respectively, accounting for 81.2%, 90.3%, and 66.9% of total revenue in the respective years.

Use of Proceeds

Regarding the use of proceeds, BaiGe Online expects net proceeds of approximately HKD 541 million from the global offering (assuming the over-allotment option is not exercised and based on the mid-point offer price of HKD 17.94 per share). According to the prospectus, BaiGe Online intends to allocate the proceeds from the global offering as follows:

Approximately 44.4% will be used for research and development of solutions and services, recruitment and retention of relevant R&D talent, and infrastructure enhancement. Approximately 20.0% will be allocated toward pursuing acquisition and investment opportunities in target companies within the same industry or upstream and/or downstream ecosystem partners to further accelerate business growth and strengthen the company’s competitiveness. Approximately 15.6% will be used to expand sales network branches in China and overseas. Approximately 10.0%, together with the company’s own funds of approximately HKD 838 million, will be used to establish an R&D center and an office building equipped with a smart showroom. The remaining 10.0% will be used for general working capital and general corporate purposes to support the company’s day-to-day operations and growth.