New Share Announcement | Nanfang Black Sesame Group Intelligent (02533) will be accepting applications for its initial public offering from July 31st to August 5th, planning to globally sell 37 million shares.

Nanfang Black Sesame Group's intelligent (02533) IPO will take place from July 31, 2024 to August 5, 2024. The company plans to globally issue 37 million shares, with 5% allocated for sale in Hong Kong, 95% for international sale, and an additional 15% for over-allotment option. The offering price per share is set at 28.00-30.30 Hong Kong dollars, in lots of 100 shares per hand. Trading of the shares is expected to begin on August 8, 2024 (Thursday) at 9:00 a.m. on the Stock Exchange of Hong Kong. The company is a supplier of automotive-grade computing SoC and SoC-based smart automotive solutions. SoC is an integrated circuit that includes a central processor, memory, I/O interface, and other key electronic components. Automotive-grade computing SoC empowers key functions of smart cars. The smart automotive solutions based on SoC integrate IP cores including the company's independently developed ISP and NPU, algorithms, support software, middleware, and toolchains to meet a wide range of customer needs. The company has designed two series of automotive-grade SoC, the Huashan series high-computing power SoC and the Wudang series cross-domain SoC. Starting with the Huashan series high-computing power SoC focusing on autonomous driving applications and commercializing it, the company has recently launched the Wudang series cross-domain SoC to expand from core autonomous driving functions to cover more diverse and complex requirements for advanced functions such as intelligent cabins and car gateways, all achieved on a single SoC. As a tier-two supplier, the company operates in the middle of the autonomous driving value chain, providing autonomous driving products and solutions in the form of bundled solutions based on SoC and algorithm-based solutions. According to Frost & Sullivan data, based on the shipment volume of automotive-grade high-computing power SoC in 2023, the company is the third largest supplier globally. The company has achieved significant growth in the past performance period. In 2021, 2022, and 2023, as well as the three months ended March 31, 2023 and 2024, the company's revenue was RMB 60.50 million, RMB 165 million, RMB 312 million, RMB 29.30 million, and RMB 27.50 million respectively. With the company's mass production of SoC and continuous iteration and upgrade of solutions, the company expects to capitalize on broad market opportunities in the foreseeable future. The company has entered into cornerstone investment agreements with cornerstone investors Qicheng Development (indirect wholly-owned subsidiary of Guangzhou Automobile Group (02238)) and Joyson Electronic USA LLC (wholly-owned subsidiary of Ningbo Joyson Electronic Corp. (600699.SH). The cornerstone investors have agreed to subscribe or cause designated entities to subscribe for an aggregate principal amount for a total of USD 9.9 million (or approximately HKD 77.10 million) of offer shares (rounded down to the nearest full trading unit of 100 shares) at the offer price. Assuming an offer price of HKD 29.15 per share (being the midpoint of the offer price range), the company expects to receive net proceeds of approximately HKD 985 million from the global offering. Approximately 80.0% will be used for the company's research and development over the next five years; approximately 10.0% will be used to enhance the company's commercialization capabilities; and approximately 10.0% will be used for operating funds and general corporate purposes, especially the purchase of inventory for the mass production of SoC.