IPO News | Red Avenue New Materials Group (09607) Subscription Period Ends, Margin Subscription Reaches HK$700 Million, Oversubscribed by 1.33 Times

Red Avenue New Materials Group (09607) conducted its IPO subscription from September 21, 2026 to September 24, 2026. As of the afternoon of September 24, Futu, Phillip, Tiger and other brokers had collectively lent HK$701 million to Red Avenue New Materials Group. Based on the public offering amount of HK$300 million, the margin subscription was oversubscribed by 1.33 times. Red Avenue New Materials Group plans to globally offer 68,118,700 H shares, with approximately 10% under the Hong Kong public offering and approximately 90% under the international offering. The offer price is HK$39.00 to HK$44.00 per offer share, with a board lot of 100 shares. The H shares are expected to commence trading on the Stock Exchange at 9:00 a.m. on September 29, 2026. It is understood that the company is a comprehensive new materials supplier in China. The company is principally engaged in the research and development, production, marketing, sales and distribution of new materials. According to a Frost & Sullivan report, the company ranked first in sales revenue in the global and China phenolic resin rubber additives market for tires in FY2025, with market shares of 41.4% and 45.9%, respectively. In the electronic materials field, the company ranked first among domestic suppliers in sales revenue in China's semiconductor photoresist market and China's TFT array photoresist market in FY2025, with market shares of 5.8% and 26.2%, respectively. For FY2023, FY2024, FY2025, the first six months of 2025 and the first six months of 2026, the company's revenue was approximately RMB2,937.3 million, RMB3,263.4 million, RMB3,420.6 million, RMB1,650.5 million and RMB2,133.1 million, respectively, with annual/period profits of RMB404.1 million, RMB534.2 million, RMB577.3 million, RMB358.3 million and RMB389.1 million, respectively. In addition, the company has entered into cornerstone investment agreements with cornerstone investors. Pursuant to these, the cornerstone investors have agreed, subject to certain conditions, to subscribe for (or procure their designated entities to subscribe for) the number of offer shares purchasable with an aggregate amount of approximately US$126.4 million at the offer price, assuming an offer price of HK$39.00. The cornerstone investors include: CITIC Bank (Hong Kong) Investment Limited, Full Truck Alliance Group Limited, Golden Valley Value Select Master Fund, Goldshore Company Limited, Happy Wisdom Limited, PRINX CHENGSHAN (Hong Kong) Tire Co., Ltd., Mr. Yang Quanhai and Ms. Zhou Bo.