IPO Pricing | Deutsche Bank Asia Pacific received 0.42 times oversubscription, with a pricing of 1.8 Hong Kong dollars per share.

Futu News, July 14th, announced that on Thursday this week...$DEEWIN (02418.HK)$Announcement: the company issued 0.543 billion shares at a price of 1.8 Hong Kong dollars per share, with a board lot of 1500 shares, expected to be listed on July 15.

During the public offering stage, Deutsche Bank Tianxia received 0.42 times oversubscription, and the final number of shares allocated to the public offering was 22.9005 million shares, accounting for approximately 4.2% of the total number of shares offered (before any exercise of over-allotment options). A total of 3131 valid applications were received, with a 100% pro-rata allotment rate.

In addition, the international offering has been oversubscribed, with the final number of shares offered being approximately 0.52 billion shares, equivalent to approximately 95.8% of the total number of shares offered (before any exercise of over-allotment options). Futu News has compiled the relevant data as shown in the table below:

In terms of the use of funds, the company plans to use approximately 0.892 billion Hong Kong dollars of net proceeds from the global offering for the following purposes: about 37.5% will be used for the construction of offline digital storage and distribution networks and maintenance service network for the commercial vehicle aftermarket; about 22.5% will be used for the continued development of the online service platform for the commercial vehicle aftermarket (Wheels Rolling Online Platform); about 30% will be used to enhance the core technological capabilities and data service capabilities in the vehicle networking and data service sector; about 10% will be used to supplement general operating funds.

Deutsche Bank World provides a variety of value-added services to participants in the entire commercial vehicle industry chain, including logistics and supply chain services, financial services, and vehicle networking data services. Commercial vehicles mainly include trucks, pickups, trailers, buses, and trucks.

The company was founded by Shaanxi Automobile Holding Group in 2005. According to the sales volume of heavy commercial vehicles in 2021, Shaanxi Automobile Holding Group is the fourth largest commercial vehicle group in China, with a market share of 13.8% in 2021.

According to the Frost & Sullivan report, in the upstream of the industry chain, the company is the largest commercial vehicle supply chain service provider in the western region of China. The company's vehicle networking and data service sector has the largest commercial vehicle manufacturer background heavy-duty commercial vehicle vehicle networking platform in China. During the performance recording period, the company's factoring business and leasing business has cumulatively served over 42,800 clients.

In terms of financial conditions, from 2019 to 2021, the company's total revenue was RMB 2.892 billion, 3.262 billion, and 3.127 billion respectively, with a compound annual growth rate of 4.0%; net income was RMB 0.241 billion, 0.318 billion, and 0.369 billion respectively, with a compound annual growth rate of 23.7%.

In terms of the industry, benefiting from the stimulation of national infrastructure construction projects and the development of trunk logistics transportation industry, heavy-duty commercial vehicles have developed rapidly in recent years. In 2021, the sales volume of heavy-duty commercial vehicles in China reached 1,395.3 thousand vehicles, with a compound annual growth rate of 7.3% from 2017 to 2021.

Driven by the stable growth of commercial vehicle sales and the stock market, the market size of China's commercial vehicle full industry chain service reached RMB 953.5 billion in 2021; it is expected that by 2026, the market size of China's commercial vehicle full industry chain service will reach RMB 1331 billion. The compound annual growth rate from 2021 to 2026 will reach 6.9%.

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