Gelonghui, December 28, 丨 China Shenzhen Construction Industry (02503.HK) announced that the company plans to sell 128.7 million shares, publicly offer 128.72 million shares, and place 11582.8 million shares; from December 28, 2023 to January 4, 2024; the offering price is HK$1.00 per share, with 4,000 shares per trading unit; the shares are expected to be listed on the main board of the Stock Exchange on January 9, 2024.
The company was founded in 2017 and is a private general contracting construction enterprise in the development stage in China. The company uses strategic thinking to specialize in municipal public works in Guangdong Province, thereby establishing reputation and expanding market share, and has successfully established a firm foothold in Guangdong Province, covering Henan, Sichuan, Fujian, Hubei, Zhejiang and the Xinjiang Uyghur Autonomous Region. According to Frost & Sullivan's report, in 2022, the company ranked in the top 50 (in terms of revenue) of over 10,000 private construction companies headquartered in Guangdong Province, with a market share of about 0.23%. In 2022, the construction industry in Guangdong Province accounted for about 8.1% of the overall Chinese market (in terms of revenue). Among all private construction companies in Guangdong Province in 2022, the top 5 private construction companies in Guangdong Province accounted for about 15.0% of the market share.
The Company estimates that the net proceeds from the sale of shares are approximately HK$85 million (assuming the sale price is HK$1.00 per share). The Company intends to use approximately 45.7% of the net proceeds from the sale of shares to finance a number of projects recently awarded to the Company as at the last viable date; approximately 41.3% of the net proceeds from the sale of shares will be used to acquire certain machinery; approximately 7.0% of the net proceeds from the sale of shares will be used to hire additional personnel to meet the expected growth in business operations to ensure sufficient manpower reserves for ongoing and other future projects; and approximately 6.0% of the net proceeds from the share sale will be used for working capital and other general corporate purposes.