IPO Announcement | Zhongmiao Holdings (01471) plans to issue 35.3 million shares globally for subscription from July 29 to August 1.

Zhongmiao Holdings (01471) will begin its IPO from July 29, 2024 to August 1, 2024, with plans to globally issue 35.3 million shares. The Hong Kong portion will account for 10% and the international portion will account for 90%. The offering price per share is between 7.0 and 10.2 Hong Kong dollars, with a lot size of 500 shares. The shares are expected to begin trading on the Hong Kong Stock Exchange on August 6, 2024 at 9:00 am. The company is a provider of insurance agency services in Shandong Province, China, dedicated to distributing various insurance products to enterprises and household insurance users, including property insurance products, life and health insurance products, accident insurance products, and car insurance products. Acquiring Haier Insurance Agency from Haier Group in 2017, the company became the designated insurance agency service provider, handling all insurance-related matters for Haier Group in China. The company has achieved continuous growth during the past performance period. The total revenue increased from 120 million yuan in the fiscal year 2021 to 174 million yuan in the fiscal year 2023, representing a compound annual growth rate of 20.4%. Income from insurance agency business accounted for 96.7%, 88.1%, 89.5%, and 93.4% of total revenue for the fiscal years 2021, 2022, 2023, and the first four months of 2024, respectively. The company has entered cornerstone investment agreements with cornerstone investors Hongtai International Fund III Limited Partnership (Hongtai) and The Reynold Lemkins Group (Asia) Limited (Reynold Lemkins) to subscribe for 36.234 million Hong Kong dollars and 10 million Hong Kong dollars at the offering price, respectively. Assuming the exercise of the over-allotment option is not carried out and the offering price for each share is 8.6 Hong Kong dollars, the company will net approximately 249.5 million Hong Kong dollars (equivalent to approximately 227.8 million yuan) from the global offering. Around 53.8% will be used for developing the company's insurance agency business in the first three years after listing, 26.2% will be used for developing and providing IT service products in the first five years after listing, 10% will be used for seeking prudent investments and acquisitions in the insurance intermediary and fintech industries, and 10% will be used for general operating funds and purposes.