Equity· IPO

Huawen Food’s IPO debut on Shenzhen Stock Exchange today

minutes 2020/09/14 01:39:40

Sep 14, 2020 (China Knowledge) - Huawen Food (003000) to start trading on the Shenzhen Stock Exchange - SME Board today, at a public offering price of RMB 5.02 per share, raising RMB 200.85 mln. Its initial listing shares account for 10% of total outstanding shares. The company’s initial price-to-earning ratio (PE) stands at 22.71.

Minsheng Securities acted as the lead underwriter and sponsor for the IPO.

Earlier, Huawen Food said its IPO was 3,576 times oversubscribed. Since 2019 to date, A-shares IPOs achieved median oversubscription of 2,373 times and the highest at 8,375 times. We expect the IPO to hit limit of 44% increment in its first day of listing. For subsequent 30-day trading the performances can be obtained from our China IPO Weekly.

Huawen Food Co Ltd is a company engaged in research and development, production and sales of snack foods. The Company sells its products under the brand Jinzai. The products mainly include flavored fish and flavored tofu. The Company also sells other snacks, including flavored jerky, konjac and duck products.

In financial year 2019, Huawen Food garnered a total revenue of RMB 894.83 mln, up 11% YoY. In terms of net income, it achieved RMB 152 mln, up 2% YoY. Accordingly, return on equity (ROE) and return on asset (ROA) stood at 19.34% and 15.29% respectively, earning per share (EPS) of 0.33 RMB.

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