Chinese Equity Investment Service Firm Zero2IPO Files For Hong Kong IPO

Chinese equity investment service platform Zero2IPO Holdings Inc has filed for an initial public offering (IPO) in Hong Kong on Monday as the company expects to see no long-term impact from the coronavirus outbreak on China’s equity investment service industry.

Zero2IPO’s prospectus, which was filed with the stock exchange on June 29, is highly redacted. Details of the offering size, IPO pricing terms and timeframe are yet to be disclosed.

Despite disruptions to offline events and business operations, Beijing-based Zero2IPO saw increased demands for its online offerings. It expects the pandemic outbreak and relevant government measures to “prompt a growing demand” for its online services.

Zero2IPO, which is one of the most recognized brands in China’s equity investment service industry, provides customers like investors, entrepreneurs, growth enterprises and government agencies with industry data services, marketing solutions, consulting and training services, as well as capital resources through both online and offline channels.

Started in 2001, the company operates four major online platforms: PEdata Database, which offers China’s equity investment statistics; PEdaily, an online information platform that recorded about 13.5 million in average page views per month in 2019; online investor-entrepreneur matching platform Deal-Market; and SandHill University, an online platform with equity investment-related courses.

Besides its online presence, the company is also involved in the organization of offline industry events covering various topics in China’s equity investment industry. It holds customized events primarily for local government agencies and investors.

Zero2IPO’s revenue increased by 2 per cent to 167.4 million yuan ($24 million) in 2019 from 164.1 million yuan ($23 million) in 2018. The company’s net profit grew 26.8 per cent to reach 34.5 million yuan ($5 million) in 2019, according to its prospectus.

The company plans to use part of the proceeds from the IPO to expand its geographical coverage into China’s major second and lower-tier cities like Guangzhou, Zhuhai, Wuhan, Qingdao and Suzhou. It also plans to upgrade the online platforms and to enrich service offerings, apart from lifting sales and marketing efforts.

Meanwhile, its prospectus indicates that Zero2IPO will seek to scale services into overseas emerging markets like Southeast Asia and India in order to “capture significant growth opportunities.”