Newman (02530) plans to globally issue 250 million shares, expected to be listed on January 10th.

Newman's (02530) will be listed from December 30, 2024 to January 7, 2025. The company plans to globally issue 250 million shares, with 10% of the shares being offered publicly in Hong Kong and 90% for international placement, with an additional 15% for oversubscription. The offer price per share is expected to be between HK$0.8 and HK$1.09, with a board lot of 8,000 shares. Trading is expected to start on January 10, 2025, at 9:00 am (Hong Kong time) on the Stock Exchange. Assuming the oversubscription option is not exercised and the offer price is HK$0.95 per share, the company expects to raise approximately HK$156.3 million from the global offering. Around 63.5% of the funds will be used to enhance marketing efforts to increase brand awareness, while 36.5% will be used to promote the company's products in Hong Kong and expand the sales network. The company primarily engages in the marketing, sales, and distribution of nutritional products in China. During the historical period, the company's nutritional products, sold under the exclusive brands "Newman's" and "Nemans," were mainly categorized into five main types: algae oil DHA, probiotics, vitamins, multivitamins, and algae calcium products. The business heavily relies on the company's brands, with suppliers manufacturing the products under OEM arrangements and/or labeling them with the company's brand. The company began selling and distributing DHA products in 2007 and is the exclusive brand owner of algae oil DHA in the Chinese maternal and infant nutrition sector. The target consumers of the company's nutritional products include pregnant women, postpartum women, infants, and children. Notably, the main raw materials for the company's algae oil DHA products are supplied by DSM Group, which is a leading provider of pharmaceuticals, infant nutrition, and dietary supplements in China, North America, India, Brazil, and over 60 other countries. According to Frost & Sullivan, DSM Group is considered the leader in the Chinese algae oil DHA market, supplying over 40% of the raw materials and finished products in 2023 by volume and value. The company's revenue and gross profit increased mainly due to the increase in sales of algae oil DHA products during the historical period. The overall gross margin remained relatively stable at around 73.0%, 74.4%, 75.2%, 75.8%, and 71.9% in the financial years 2021, 2022, 2023, the first 6 months of 2023, and the first 6 months of 2024, respectively. The net profits for the periods were approximately HK$120 million, HK$87.522 million, HK$159 million, HK$77.258 million, and HK$45.281 million respectively.