China IPO Digest: Manareco Lists On STAR Market; Hymson Eyes $107m

Xi’an Manareco New Materials has made its trading debut on STAR Market, while Shenzhen Hymson Laser Intelligent Equipments has raised 728 million yuan ($107 million) from a subscription exercise ahead of its offering.

Manareco lists at a premium after $291m STAR Market IPO

Xi’an Manareco New Materials Co., Ltd, a manufacturer of organic new materials, listed at a premium on the Nasdaq-style STAR Market of the Shanghai Stock Exchange on Wednesday.

Manareco, which kicked off its subscription exercise on August 20, secured 1.996 billion yuan ($291 million) in the IPO after it sold 17.55 million shares at an offer price of 113.72 yuan ($16.65) apiece. Its shares opened at 147 yuan ($21.50), up 29 per cent from the offer price.

Chinese Haitong Group’s subsidiary Haitong Securities served as the lead underwriter for the deal.

The Xi’an-based Manareco will use the IPO proceeds to ramp up financial support to facilitate its material innovations and scientific detection centre, and also fuel working capital.  

Manareco — co-founded in 1999 by prominent investment firms including Shanghai Pivot Capital, Eastern Ocean (Wuhu) Equity Investment Fund (LLP), and CapitalEdge Investment Management — is engaged in the manufacture of liquid crystal singles, organic LED materials, and pharmaceutical intermediates. 

Its top clients include Merck KGaA, Nakamura Scientific Instrument Industry, Chugai Pharmaceutical, Beijing Bayi Space LCD Technology, and Hecheng Display.

It had clocked 990 million yuan ($145 million) annual revenue and 148 million yuan ($22 million) net profit in 2019.  

Hymson secures $107m ahead of IPO

Chinese laser and automation solution developer Shenzhen Hymson Laser Intelligent Equipments Co., Ltd, has raised 728 million yuan ($107 million) in a subscription exercise ahead of its initial public offering (IPO) on STAR Market, as per a company filing on September 1. 

Hymson, which kicked off its subscription exercise on August 26, offered 50 million common shares at 14.56 yuan ($2.13) each. State-backed CITIC Securities is the principle underwriter for the deal.

With the proceeds, the company aims to develop its laser and automation projects and research centre. 

Founded by Shengyu Zhao in 2008, Hymson produces lasers and automatic integrated products and services including lithium battery automation, wind-cooled UV laser equipment, and sapphire cutting devices. The manufacturer is based in Southeast China’s Shenzhen, and it has offices in Guangzhou, Anshan, Jiangsu, and Jiangmen. 

Shengyu Zhao will remain the largest shareholder in Hymson with a 43.75 per cent stake, while state-owned CMB International’s investment arm Shenzhen Zhaoyin Yahao Innovation Investment will be the second-largest shareholder with 9.04 per cent equity interest.

Its other shareholders include Guoxin Lansi Fund (5.38%), Legend Capital (2.66%) and Shenzhen Capital Group (1.84%). CMB International and the three other shareholders had teamed up seeding “millions of US dollars” in its Series A round of financing back in 2016.