Lexin Outdoor (02720) launches IPO from January 31 to February 5, introducing Horizon Ventures and Huangshan Dejun to subscribe for HKD 130 million worth of shares.

Leling Outdoor (02720) will be listed from January 31, 2026 to February 5, 2026. The company plans to globally sell 28.205 million shares, with 10% available for public sale in Hong Kong (subject to reallocation) and 90% for international sale (subject to reallocation). The price range for each share is HK$11.25 to HK$12.25, with 500 shares per lot. It is expected that the shares will start trading on the Stock Exchange of Hong Kong on February 10, 2026, at 9:00 am. Furthermore, the company has entered cornerstone investment agreements with Horizon Venture Capital Management Limited and Huangshan Dejun Enterprise Management Limited, under which the cornerstone investors have agreed, subject to certain conditions, to subscribe at the offer price or induce their designated entities to subscribe for a total amount of HK$130 million. Assuming the offer price is HK$11.75 per share, the net proceeds from the global offer will be approximately HK$271.8 million. Approximately 45.0% will be used for brand development and promotion; about 25.0% will be used for product design and development and establishing a global fishing tackle innovation center; approximately 20.0% will be used for upgrading production facilities and enhancing digital capabilities; and around 10.0% will be used for working capital and general corporate purposes. According to data from Frost & Sullivan, based on revenue for 2024, the company ranked first in the global fishing gear industry in 2024, with a market share of 23.1%. The fishing gear market is a sub-industry of the fishing tackle market. Based on retail sales in 2024, the fishing gear market represents approximately 5.2% of the global fishing tackle market. According to Frost & Sullivan data, based on revenue for 2024, the company's market share in the global fishing tackle manufacturing market is 1.3%. The company operates a dual business model, combining OEM/ODM manufacturing capabilities with a growing OBM business to meet diverse market demands. With its product portfolio, product design and development, supply chain, and quality control, the company offers OEM/ODM solutions covering the entire process from product design to manufacturing for outdoor fishing gear brands. The company has become a global leader in fishing gear OEM/ODM solutions. During the historical period, the company's revenue mainly came from the OEM/ODM model, accounting for 94.1%, 90.2%, 92.3%, and 93.1% of the company's total revenue in 2022, 2023, 2024, and the eight months ended August 31, 2025, respectively. In addition, leveraging its rich experience in fishing gear design and manufacturing, the company strategically expanded into its own brand business by acquiring the well-known carp fishing brand Solar in 2017. In China's fishing gear manufacturing industry, the company's market share has steadily increased from 23.4% in 2022 to 28.4% in 2024, consolidating its position as a market leader with sustainable growth potential. During the historical period, the company's gross margin increased from 23.2% in 2022 to 26.6% in 2024, and further increased to 27.7% for the eight months ended August 31, 2025.