New Stock Announcement | Carolot (02549) will be conducting a global offering of 130 million shares from September 23 to September 26.

Carote (02549) is scheduled to launch its IPO from September 23 to September 26, 2024. The company plans to globally offer 129.9 million shares, with 10% of the shares offered in Hong Kong and 90% internationally. The price range is set at HK$5.72 to HK$5.78 per share, with a board lot of 500 shares. The expected trading of shares on the Stock Exchange of Hong Kong will begin on October 2, 2024 (Wednesday). The company is a global kitchenware brand. Since the launch of the "Carote" brand in 2016, the company has established a significant presence in the online kitchenware segment in major markets such as China, the US, Western Europe, Southeast Asia, and Japan, becoming one of the fastest-growing kitchenware brands globally. The company's products emphasize "utilitarianism" and "value for money," aiming to provide customers with practical, well-designed, and affordable products to promote a modern cooking lifestyle. During the performance record period up to the final practicable date, the company operates both an ODM business and a brand business, with the latter being a strategic focus for future growth and development. Due to the company's expansion efforts, the brand business achieved rapid growth during the performance record period, with revenue from this segment increasing significantly from RMB 2.83 billion in 2021 to RMB 13.8 billion in 2023 at a compound annual growth rate of 120.7%. As of the three months ended March 31, 2024, the revenue from the brand business reached RMB 4.5 billion, representing an increase of 82.6% compared to the same period in 2023. The company has entered into cornerstone investment agreements with cornerstone investors MPC VII Pte. Ltd. and YSC Go (BVI) Limited to subscribe for a total amount of approximately HK$313 million of the offered shares. The company believes that the cornerstone placement demonstrates the commitment, confidence, and interest of cornerstone investors in the group's business and prospects, helping to enhance the company's image. The cornerstone placement will ensure a reliable commitment of a reasonable scale at the start of the market promotion period, providing confidence to the market. Assuming the offering price is HK$5.75 per share, the company estimates that it will receive net proceeds of approximately HK$678 million from the global offering. Approximately 35% of the proceeds are expected to be used for seeking acquisition and investment opportunities, about 25% for product research and development, around 20% for expanding sales channels, approximately 10% for ESG-related investments, and the remaining 10% for operational capital and other general corporate purposes.