Equity· IPO

Guangzhou Ruoyuchen Technology’s IPO debut on Shenzhen Stock Exchange today

minutes 2020/09/25 03:24:58

Sep 25, 2020 (China Knowledge) - Guangzhou Ruoyuchen Technology (003010) to start trading on the Shenzhen Stock Exchange - SME Board today, at a public offering price of RMB 15.2 per share, raising RMB 462.54 mln. Its initial listing shares account for 25% of total outstanding shares. The company’s initial price-to-earning ratio (PE) stands at 22.98.

China International Capital Corporation (CICC) acted as the lead underwriter and sponsor for the IPO.

Earlier, Guangzhou Ruoyuchen Technology said its IPO was 4,783 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.

Guangzhou Ruoyuchen Technology Co Ltd is a China-based company providing comprehensive e-commerce services. The Company's main businesses include online agency operations, channel distribution and brand planning. The services include brand positioning, store operations, channel distribution, integrated marketing, data mining and supply chain management. The Company conducts its businesses within the China market and to overseas markets.

In financial year 2019, Guangzhou Ruoyuchen Technology garnered a total revenue of RMB 958.87 mln, up 3% YoY. In terms of net income, it achieved RMB 100 mln, up 9% YoY. Accordingly, return on equity (ROE) and return on asset (ROA) stood at 17.25% and 13.51% respectively, earning per share (EPS) of 0.95 RMB.



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