Chinas Measuring Instruments Provider CEM Raises $70m In Shenzhen IPO

China’s Shenzhen Everbest Machinery Industry Co Ltd (also known as CEM), listed its shares at a premium on the Shenzhen Stock Exchange after raising 496 million yuan ($70 million) in an initial public offering (IPO) on Wednesday. 

CEM, which filed for an IPO on March 30, sold up to 33.33 million common shares at a price of 14.89 yuan ($2.11). The stock opened at 17.87 yuan ($2.5), a jump of 20.01 per cent compared to the IPO price. 

CEM, headquartered in Shenzhen, specializes in R&D, production and marketing of professional measuring instruments. It produces as many as 32 production lines including thermal imager, infrared thermometer, body thermometer, digital multimeter, clamp meter, insulation tester, and electrical tester, among others.

The company’s products cater to a slew of sectors such as electric and power, besides environment detection, petrochemical, healthcare, transportation, software design and automative testing. 

In collaboration with Chinese tech giant Tencent’s Internet of Things Hub, CEM launched an intelligent body thermometer, which enables cloud-based real-time tracking solutions for health amid COVID-19 pandemic, per its press release on April 6. 

Apart from the body thermometer, it recently has also developed a collection of AI driven epidemic prevention series for better body temperature testing.

Its prospectus shows that it generated a total of 466 million yuan ($66 million) in annual revenue and 90.98 million yuan ($13 million) in net profit in 2019.  

The company’s revenues derive from its exportation business, amounting to more than 91 per cent of earning for the three years in a row. It counts the US among its largest export country, contributing about half of its annual revenues. 

Currently, CEM owns five subsidiaries in the Greater China and two affiliates in Germany and Russia. 

Proceeds will be used to develop the company’s manufacturing base, upgrade its research centre, extend the marketing network, and fuel its working capital. 

State-owned China Merchants Group’s subsidiary China Merchants Securities is the lead underwriter of the deal.