IPO News | "Integrated Chemical Group" BinHua Shares Launches IPO, Scheduled to List on July 10; Minimum Subscription Amount HK$3,626.21 per Lot

Futu News, June 30: $BEFAR GROUP (06745.HK)$ The company announced that the subscription period will run from June 30 to July 7. It plans to globally offer approximately 352 million shares, with listing expected on July 10.

Company Overview

BinHua Shares is a domestic integrated chemical group established in 1968, with over 50 years of deep involvement in the chemical industry. The company primarily engages in the production and sale of chlor-alkali chemicals, C3/C4 chemicals, and wet electronic chemicals. Its core products include caustic soda, propylene oxide, MTBE, and electronic-grade hydrofluoric acid.

BinHua Shares is advancing a business model that integrates new energy initiatives with its core chemical operations to accelerate the green and low-carbon transition of its energy supply. Its approved 'Source-Grid-Load-Storage Integrated Project' is among the first pilot projects in Shandong Province. Upon completion, the project will generate and consume 424 million kWh of electricity annually, with green power accounting for more than 60% of the Beihai base’s total electricity consumption.

Financial Summary

For the fiscal years ended December 31, 2023, 2024, and 2025, BinHua Shares reported revenues of RMB 7,305.9 million, RMB 10,228.1 million, and RMB 14,836.4 million, respectively. Gross profit decreased by 46.2% from RMB 1,216.5 million for the year ended December 31, 2023, to RMB 654.0 million for the year ended December 31, 2024, and then increased by 122.6% to RMB 1,455.6 million for the year ended December 31, 2025.

Source: Prospectus

Use of Proceeds

Regarding the use of proceeds, BinHua Co., Ltd. expects the net proceeds from the global offering to be approximately HK$1.102 billion (assuming the over-allotment option is not exercised and based on the mid-point of the offer price range at HK$3.32 per share). According to the prospectus, BinHua Co., Ltd. intends to allocate the proceeds from the global offering as follows:

Approximately 40% will be used for the construction of the company’s Source-Grid-Load-Storage project in the Binhai Beihai Economic Development Zone; approximately 30% will be allocated to enhancing the company’s research and development capabilities; approximately 10% will fund the construction of a new electronic chemicals production facility in Yangxin, Binzhou, which will include multiple functional chemical production lines with a designed annual capacity of 17,000 metric tons capable of producing stripping and etching solutions and other products; approximately 10% will be dedicated to expanding the company’s overseas sales and service network; and approximately 10% will be reserved for general working capital and operational flexibility, enabling the company to prudently and promptly respond to strategic opportunities and unforeseen market changes.

Further reading:BinHua Co., Ltd. Prospectus

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