New stock news | Befar Group (06745) ends its IPO with a total subscription amount of 15.282 billion Hong Kong dollars, oversubscribed by 119.89 times.

The comprehensive chemical group Befar Group (06745) conducted its IPO from June 30, 2026 to July 7, 2026, and the latest IPO has ended. According to market reports, Befar Group has obtained a margin loan of HK$15.282 billion from securities brokers, based on the public fundraising amount of HK$126.41 million, oversubscribed by 119.89 times. Befar Group plans to globally issue 352 million H shares, with 10% allocated for public offering in Hong Kong and 90% for international offering. The offering price per share is HK$3.05-3.59. Trading of H shares, with 1,000 shares per lot, is expected to begin at 9:00 AM on July 10, 2026 (Friday) on the Stock Exchange of Hong Kong. Huatai International and BOC International serve as its joint sponsors. In this offering, Befar Group has introduced cornerstone investors such as Beijing Yian, Luhua Daosheng, Aurora SF, CHINAHONGQIAO, Hyperion Venture, Tiantu, Shengwei, with a total subscription amount of US$49.8 million. Based on the offering price of HK$3.32 per share, cornerstone investors have subscribed for approximately 118 million H shares, accounting for 33.41% of the total shares to be issued after the global offering and 5.01% of the total issued share capital of the group. According to the prospectus, Befar Group is a domestic comprehensive chemical group founded in 1968 and has been deeply involved in the chemical industry for over 50 years. The company mainly engages in the production and sales of caustic chemicals, C3/C4 chemicals, and wet electronic chemicals. The company's core products include caustic soda, epichlorohydrin, MTBE, and electronic-grade hydrofluoric acid. With an integrated industrial chain layout, Befar Group is also able to independently produce some of the raw materials required for production operations, including: (i) the annual designed production capacity of raw salt at the Zhanhua base is approximately 500,000 tons, meeting about 50% of the total consumption of raw salt required for the company's caustic soda production; and (ii) the annual designed production capacity of propylene at the Beihai base is about 600,000 tons, enough to meet all the propylene consumption needed for epichlorohydrin production. In terms of finances, in 2023, 2024, and 2025, the company's revenue was approximately RMB 7.306 billion, RMB 10.228 billion, and RMB 14.836 billion respectively; during the same periods, the company's annual profit was approximately RMB 399 million, RMB 217 million, and RMB 235 million respectively. In accordance with the group's strategy, the group plans to allocate around 40% of the net proceeds from the global offering to the construction of the Yuanwang He Storage Project in the Binzhou Beihai Economic Development Zone; around 30% will be allocated to enhance the group's research and development capabilities; around 10% will be allocated to the construction of a new electronic chemical production facility in Yangxin, Binzhou, which will include multiple functional chemical production lines with a designed annual capacity of 7,000 tons, capable of producing stripping etchants and other products; around 10% will be allocated to expand overseas sales and service network; around 10% will be used for general operating funds and maintaining operational flexibility.