Blueco (00325) conducted its IPO from December 31 to January 7 and received subscriptions from four cornerstone investors for the sale of $50 million shares.

Bluco (00325) will be listed from December 31, 2024 to January 7, 2025. The company plans to globally offer 24.1203 million shares, with 10% of the shares sold in Hong Kong and 90% sold internationally, with an additional 15% of over-allotment option. The offer price per share is expected to be no more than HK$60.35 per share, with a trading start on the Stock Exchange on January 10, 2025 (Friday) at 9:00 am. The company is a leader in the Chinese building block toy role-playing industry. With over 500 patents, original IP capabilities, and non-exclusive cooperation with around 50 well-known IPs, the company focuses on providing consumers with high-quality and affordable building block role-playing toys, achieving rapid growth. The company's building block role-playing toys highly restore the charm of IP characters. Through the combination of strong product capabilities and supply chain capabilities, the company not only maintains cost advantages but also continues to expand its toy categories. The company has established a multi-channel sales network in China, reaching a wide range of consumers. Starting in 2022, the company shifted towards offline sales channels focusing on distributors. According to Frost & Sullivan, the company is the largest and leading building block role-playing toy enterprise in China, with approximately RMB 1.8 billion GMV in 2023. The company is also a fast-growing toy enterprise, with GMV growth exceeding 170% in 2023. In 2023, the company held a market share of 30.3% in the Chinese building block toy sub-market and 7.4% in the overall Chinese building block toy market based on GMV calculations. The market size for building block role-playing toys in China reached RMB 5.8 billion in 2023, accounting for 5.5%, 14.3%, and 24.4% of the Chinese toy market, role-playing toy market, and building block toy market respectively. The company has achieved significant performance growth in the past. It achieved revenues of RMB 330 million, RMB 326 million, RMB 877 million, and RMB 1.046 billion in 2021, 2022, 2023, and the six months ending June 30, 2024 respectively, with annual compound growth rates of 63.0% from 2021 to 2023 and a year-on-year revenue growth of 237.6% as of June 30, 2024. The company's gross profit was RMB 123 million, RMB 123 million, RMB 415 million, and RMB 554 million for the same periods, with annual compound growth rates of 83.4% from 2021 to 2023, and a year-on-year growth of 306.5% as of June 30, 2024. The company's gross margin increased continuously from 37.4% in 2021 to 37.9% in 2022, further to 47.3% in 2023, and 52.9% as of June 30, 2024. As of June 30, 2024, the company's adjusted earnings were RMB 2.92 billion, representing a 300.9% growth from the year ended December 31, 2023. The company, joint sponsors, and overall coordinators have signed cornerstone investment agreements with cornerstone investors such as Jinglin, UBS AM Singapore, Fidelity International, and Fidelity Hong Kong, who have agreed to subscribe for or have entities designated by them subscribe for a total of USD 50 million worth of shares at the offer price, subject to certain conditions. The company believes that through cornerstone investors' investments, it will enhance the company's reputation and demonstrate investors' confidence in the group's business and prospects. The company met cornerstone investors through the global offering process. Assuming an offer price of HK$58.00 per share, the company estimates that the net proceeds from the global offering will be approximately HK$1.294 billion. Approximately 25% will be used to enhance the company's product design and development research and development capabilities, 25% for investment in core production resources (such as molds) and the establishment of its own large-scale factories focused on producing building block role-playing toys, in line with the strategy of full audience, full price range, and globalization growth, as well as expanding and optimizing production resources; approximately 20% will be used to further enrich the company's IP matrix to implement the growth strategy, about 20% for sales and marketing activities, especially content-driven marketing activities, to increase brand awareness and product popularity; about 10% for working capital and other general corporate purposes.