New stock research report | Rongli Construction (09639) will start IPO today, introducing 3 cornerstone investors including SANY INT'L.

Rongli Construction (09639) is a large-scale Hong Kong contractor engaged in civil and cable engineering as well as CECEP Solar Energy photovoltaic system engineering. IPO date: September 27th to October 4th Listing date: October 9th Sole sponsor: Tradition Financing Receipt bank: BANKCOMM (Hong Kong) 2.5 billion shares will be issued, with approximately 90% allocated as placement shares, approximately 10% offered to the public, and an additional 15% for over-allotment. If the public offering is subscribed 15 times but less than 50 times, the allocation for public offering may increase from 10% to 30%. If it is subscribed at least 50 times but less than 100 times, the allocation may increase to 40%, and if subscribed at 100 times or more, it will be increased to 50%. However, if the placement shares are not fully subscribed but the public offering is fully subscribed, or if both are fully subscribed but the public offering is subscribed less than 15 times, the allocation for public offering may increase from 10% to a maximum of 20%, subject to the lower limit. The offer price per share is between HKD 0.57 and HKD 0.73, raising a maximum of HKD 1.825 billion, representing approximately 25% of the total market value, with an IPO expenditure of approximately HKD 32 million. Based on 5,000 shares per lot, the initial investment is HKD 3,686.82. Based on the upper limit of HKD 0.73, the market value is approximately HKD 7.3 billion (calculated based on the adjusted net profit of approximately HKD 81.78 million for the year 24, with a P/E ratio of approximately 8.9 times). As of the end of March 24, the average net asset value is approximately HKD 155 million. The public offering is divided into Class A (applicants of 5 million or less) and Class B (applicants of 5 million or more). Business: Revenue for the years 22 to 24 (up to the end of March) was HKD 520 million, HKD 360 million, and HKD 526 million respectively. Gross profit for the years 22 to 24 (up to the end of March) was HKD 93.61 million, HKD 75.53 million, and HKD 121 million respectively. Net profit for the years 22...