IPO News | "Water Tour Service Provider" Shouxihu Cultural Tourism launches IPO, plans to list on October 23, with a minimum lot subscription amount of HKD 5,121.14

Futu News, October 14,$SWL TOUR (06157.HK)$Announced that the IPO will take place from October 14 to October 20. The company plans a global offering of approximately 44.76 million shares and is expected to list on October 23.

Company Overview

The company is a state-owned water tour service provider headquartered in Yangzhou, Jiangsu Province. It primarily operates water cruise sightseeing services in Yangzhou's famous scenic areas, namely the Shugang-Shouxihu Scenic Area and the Ancient Canal region. Benefiting from the growing reputation of Shouxihu, the company's iconic "Shouxihu Boat Lady" brand, the Grand Canal Yangzhou Cruise Performance, as well as favorable national tourism economic policies and support for the National Grand Canal Cultural Belt strategy, the company's water cruise sightseeing services have successfully attracted both domestic and international tourists.

The Company is the sole licensed operator of waterborne sightseeing cruises in Yangzhou, and its cruise vessels are the only designated mode of transport within Yangzhou's waterways. The Company holds a 20-year exclusive right to operate waterborne sightseeing cruises in the Shugang-Slender West Lake Scenic Area. It is also the sole operator providing waterborne sightseeing cruise services in the Ancient Canal area, and as of the Latest Practicable Date, there is no specified expiration date for its operations in the Ancient Canal area.

Financial Overview

The Company's total revenue was approximately RMB109.1 million, RMB111.4 million, RMB141.2 million, and RMB83.2 million, respectively, representing a compound annual growth rate (CAGR) of approximately 13.8% from 2023 to 2025. For the years 2023, 2024, and 2025, and for the six months ended June 30, 2025 and 2026, the Company's gross profit was RMB64.4 million, RMB60.6 million, RMB82.2 million, RMB53.6 million, and RMB53.1 million, respectively.

Use of Proceeds

Regarding the use of proceeds, Slender West Lake Cultural Tourism expects the net proceeds from the Global Offering to be approximately HK$157 million (assuming the over-allotment option is not exercised and based on the mid-point of the indicative offer price range of HK$4.5). According to the prospectus, Slender West Lake Cultural Tourism intends to utilize the funds raised from the Global Offering for the following purposes:

48.4% will be used to develop immersive water tour projects within the Slender West Lake Scenic Area (the "Slender West Lake Night Tour Project"), which is expected to be completed by the end of 2027. Approximately 10.2% will be used to develop new water tour routes and projects in Yangzhou. Approximately 7.3% will be used to expand the project portfolio under two new target tourist attractions or the water tourism project management and services segment (the "New Management Service Projects") to further expand regional presence and strengthen the high-net-worth customer base. Approximately 30.8% will be used for continuous asset upgrades of the Company's sightseeing vessels and related facilities, with a focus on enhancing overall service quality and visitor experience. Approximately 3.3% will be used for working capital and other general corporate purposes.

Further reading:Slender West Lake Cultural Tourism Prospectus

The golden season for subscribing to new stocks is here! Subscribe via Futu with 0% interest, 0 fees, and 0 cash deposit required. Participate in the current promotion for a chance to waive your new stock subscription fees for 1 year,Come try it out now >>

Edited by Vincent

21K Views