GCH Technology’s IPO debut on SSE STAR Market today

minutes 2021/06/07 07:01:55

Jun 07, 2021 (China Knowledge) - GCH Technology (688625) to start trading on the Shanghai Stock Exchange STAR Market today. The IPO is priced at RMB 16.48 per share to raise RMB 549.3 mln. Its initial listing shares accounts for 25% of total outstanding shares. The company’s initial price-to-earnings ratio (PE) stands at 19.95. During subscription the IPO was 5,012 times oversubscribed.

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

GCH Technology is a China-based company mainly engaged in the manufacture of polymer material additives. The Company's main products nucleating agents, synthetic hydrotalcite and compound additives are key materials for the manufacture of high-performance resins and are at the upstream of the high-performance resin and modified plastics manufacturing industry. The Company's products can improve the general resin products of optical, mechanical properties and to improve the stability of resin products, made of high performance resin products can meet the food packaging contact materials, medical equipment, pharmaceutical packaging, infants and young children, auto parts, lithium battery materials, household appliances household items, lithium batteries, such as building materials like industry safety and environmental requirements.

In financial year 2020, GCH Technology garnered a total revenue of RMB 460 mln, up 17.3% YoY. In terms of net income, it achieved RMB 117 mln, up 30.5% YoY. In the latest quarter of 2021, the company reported revenue of RMB 122 mln, a YoY increase of 15.1%, and its net profits reached RMB 36.08 mln, up 11.4% YoY.

The funds raised from the IPO will be used for the first phase of Guangzhou Kecheng’s new polymer material additives project, and supplementary working capital.

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