New Media Lab opened its retail book today while bubble tea chain GoodMe is reportedly going public to raise HK$2.34 billion.

The Hong Kong-based digital media company priced its offer between HK$0.84 and HK$0.92 apiece, aiming to raise up to HK$138 million by issuing 150 million shares in total. The minimum investment is HK$4,646.40 per lot.

New Media Lab’s adjusted net profit increased 2.7 percent to HK$43.56 million last year. But revenue dipped 1.8 percent to HK$240.68 million, mainly due to a slip in its major business digital advertising.

It will use the proceeds to pursue growth through mergers and acquisitions, further expand product lines and explore opportunities in online finance or banking and other specific industries, in addition to repaying bank loans and augmenting operations.

For its part, GoodMe has reportedly chosen Goldman Sachs and UBS to arrange its IPO, insiders told IFR, adding the chain plans to go public at the beginning of next year.

The news came as EY estimated the funds raised in all IPOs in Hong Kong inched up by 0.6 percent yearly to HK$17.8 billion for the first half of this year, while the number of companies involved jumped 45 percent yearly to 29.

And Hong Kong outperformed the global markets. The value of new listings from all markets slumped 36 percent yearly to $60.9 billion (HK$475 billion) for the first six months of this year, while the number of companies decreased 5 percent to 615 cases.

EY sees a rally in the Hong Kong IPO market in the second half on the back of a continuation of the mainland’s economic recovery and a rollout by Hong Kong Exchanges and Clearing (0388) of supportive measures.

https://www.thestandard.com.hk/section-news/section/2/253754/Bubble-chain-to-slake-IPO-thirst

Category: Hong Kong