Befar Group (06745) will be listed from June 30th to July 7th, intending to globally issue 352 million H shares and introduce cornerstone investors such as CHINAHONGQIAO and Hyperion Venture.

Befar Group (06745) will conduct its initial public offering from June 30, 2026 to July 7, 2026. The company plans to globally issue 352 million H-shares, with 10% for public offering in Hong Kong and 90% for international offering. The offering price per share is between HK$3.05 and HK$3.59. Each lot consists of 1000 H-shares, and trading of H-shares is expected to commence on July 10, 2026 at 9:00am on the Stock Exchange of Hong Kong. The group is a domestic comprehensive chemical group, established in 1968, with over fifty years of experience in the chemical industry. The group is mainly engaged in the production and sale of chlor-alkali chemicals, C3-C4 chemicals, and wet electronic chemicals. The group's core products include caustic soda, epichlorohydrin, MTBE, and electronic grade hydrofluoric acid. Industry Position: Multiple products are leading in the industry. According to Frost & Sullivan data, based on 2025 revenue, the group is the largest producer of trichloroethylene, tetrachloroethylene, and allyl chloride in China, and the second-largest producer of epichlorohydrin and MTBE, with market shares of approximately 36.0%, 41.4%, 23.8%, 9.5%, and 3.8% respectively. The group is also one of the few domestic producers capable of producing electronic grade hydrofluoric acid for advanced semiconductor processes. The group has entered cornerstone investment agreements with Beijing Yian and Huatai Capital Investment (relating to offshore swaps with Beijing Yian), Lu Huadao and Huatai Capital Investment (relating to Lu Huadao's offshore swaps), Aurora SF (related arrangements), CHINAHONGQIAO, Hyperion Venture, Tiantu, Shenwei (collectively referred to as cornerstone investors). According to the agreements, the cornerstone investors have agreed to subscribe, subject to certain conditions, at the offering price, or to cause their designated entities to subscribe, for an aggregate amount of approximately US$49.8 million (excluding brokerage commissions, SFC trading fee, HKEX trading fee, and SEHK trading fee) for the number of shares in the offering (rounded down to the nearest whole number of 1000 H-shares per Board lot)(cornerstone allocation). Based on an offering price of HK$3.32 per share (the midpoint of the indicative price range), the total number of shares that the cornerstone investors will subscribe for will be 118 million shares, representing approximately 33.41% of the offering shares to be issued following the global offering and 5.01% of the total issued share capital of the group. Assuming an offering price of HK$3.32 per share (the midpoint of the indicative price range) and after deducting underwriting commissions and other estimated expenses related to the global offering, the group expects to receive net proceeds of approximately HK$1.102 billion from the global offering. In line with the group's strategic and development plans, the group intends to utilize the net proceeds as follows: (1) about 40% of the net proceeds will be used for the construction of the SourceNet storage project in Binzhou Beihai Economic Development Zone (the project). (2) Approximately 30% of the net proceeds will be used to strengthen the group's research and development capabilities. (3) Approximately 10% of the net proceeds will be used to establish a new electronic chemical production facility in Yangxin, Binzhou, consisting of multiple functional chemical production lines with a designed annual production capacity of 7,000 tons, capable of producing stripping etchants and other products. (4) Approximately 10% of the net proceeds will be used to expand overseas sales and service networks. (5) Approximately 10% of the net proceeds will be reserved for general working capital and to maintain operational flexibility, enabling the group to respond promptly and prudently to strategic opportunities and unforeseen market changes. For the fiscal years ended December 31, 2023, 2024, and 2025, the group's revenues were RMB 7.306 billion, RMB 10.228 billion, and RMB 14.836 billion respectively.