Powerlong Commercial Management Holdings Limited (the “Company”, together with its subsidiaries, the “Group”; Stock code: 9909), announced the details of its global offering (the “Global Offering”) and its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”).
Highlights of the Global Offering:
– Number of Offer Shares under the Global Offering: 150,000,000 Shares (subject to the Over-allotment Option).
– Number of Hong Kong Offer Shares: 15,000,000 Shares (subject to reallocation).
– Number of International Offer Shares: 135,000,000 Shares (including 14,369,156 Reserved Shares under the Preferential Offering) (subject to reallocation and the Over-allotment Option).
– Offer Price: Not more than HK$10.00 per Offer Share and expected to be not less than HK$7.50, plus brokerage fee of 1.0%, SFC transaction levy of 0.0027% and Stock Exchange trading fee of 0.005% (payable in full on application in Hong Kong dollars and subject to refund).
– The Hong Kong Public Offering will commence at 09:00 a.m. on Monday, December 16, 2019 and is expected to close at 12:00 noon (at 11:30 a.m. for White Form eIPO applications) on Thursday, December 19, 2019.
– Dealings in the Shares on the Stock Exchange are expected to commence at 09:00 a.m. on Monday, December 30, 2019.
– The stock code is 9909.
– Shares of the Company will be traded in board lots of 500 Shares each.
– ABCI Capital Limited is the Sole Sponsor and the Sole Global Coordinator.
– ABCI Capital Limited, China Industrial Securities International Capital Limited, Guotai Junan Securities (Hong Kong) Limited, CRIC Securities Company Limited, Zhongtai International Securities Limited and CMB International Capital Limited are the Joint Bookrunners.
Number of Offer Shares under the Global Offering is a total of 150,000,000 Shares (subject to the Over-allotment Option). The Company is initially offering 15,000,000 Offer Shares (subject to reallocation) for subscription by the public in Hong Kong at the Offer Price, representing 10% of the total number of Offer Shares initially available under the Global Offering. The International Offering will consist of an initial offering of 135,000,000 Offer Shares (subject to reallocation and the Over-allotment Option), representing 90% of the total number of Offer Shares initially available under the Global Offering.
The Hong Kong Public Offering will commence at 09:00 a.m. on Monday, December 16, 2019 and is expected to close at 12:00 noon (at 11:30 a.m. for White Form eIPO applications) on Thursday, December 19, 2019. Dealings in the Shares on the Stock Exchange are expected to commence at 09:00 a.m. on Monday, December 30, 2019. Shares of the Company will be traded in board lots of 500 Shares each. The stock code is 9909.
Pursuant to the Over-allotment Option, the International Underwriters have the right, exercisable by the Sole Global Coordinator (on behalf of the International Underwriters) at any time from the Listing Date until 30 days after the last date for the lodging of applications under the Hong Kong Public Offering, to require the Company to issue and allot up to 22,500,000 additional Offer Shares, representing 15% of the initial Offer Shares, at the same price per Offer Share under the International Offering to cover over-allocation in the International Offering, if any.
The Company estimates that it will receive net proceeds of approximately HK$1,223.5 million from the Global Offering, after deducting the underwriting commissions and other estimated expenses payable by it in connection with the Global Offering, assuming an Offer Price of HK$8.75 per Offer Share (being the mid-point of the Offer Price range stated in the Prospectus) and that the Over-allotment Option is not exercised. The Company intends to use the net proceeds from the Global Offering for the purposes and in the amounts set forth below:
– Approximately 50% or HK$611.8 million, will be used to pursue strategic acquisition of and investment in other small to mid-sized commercial operational service providers in order to scale up the Group’s commercial operational service business and expand the Group’s commercial operational service portfolio;
– Approximately 25% or HK$305.9 million, will be used to upgrade the Group’s information technology systems for digitization and smart operation and management, aiming to enhance consumer experience, improve the quality of services provided to tenants and improve its operational efficiency;
– Approximately 10% or HK$122.4 million, will be used to make equity investment in certain tenants and suppliers with an aim of establishing close strategic cooperation with them;
– Approximately 5% or HK$61.2 million, will be used for the renovation of retail commercial properties developed or owned by Independent Third Parties under the asset-light business model;
– Approximately 10% or HK$122.4 million, will be used for general business purpose and working capital.
ABCI Capital Limited is the Sole Sponsor and the Sole Global Coordinator.
ABCI Capital Limited, China Industrial Securities International Capital Limited, Guotai Junan Securities (Hong Kong) Limited, CRIC Securities Company Limited, Zhongtai International Securities Limited and CMB International Capital Limited are the Joint Bookrunners.
