Yoho Group, an e-commerce startup based in Hong Kong, listed on the main board of the Hong Kong Stock Exchange on Friday. The company is expected to issue 55 million shares in this IPO with the share price ranging from HK $2.1 to HK $2.6. Futu and CMBC Capital jointly served as underwriters in this IPO.
As early as June 2021, Yoho Group had tried to hand over its listing application but failed to attain the necessary approvals. This is the second time that Yoho has applied for a listing and it is seeing some success.
Yoho has over 23,000 SKUs and a customer base of over 807,000 registered members. According to a Frost & Sullivan report, in the fiscal year of 2021, according to the website flowmeter, Yoho ranked first among the e-commerce platforms focusing on electronic products and household appliances in Hong Kong, and commanded a market share of about 5.6%.
In FY 18/19, FY 19/20, FY 20/21, and the first eight months of FY 21/22, the company’s total revenue was about HK $135 million, HK $260 million, HK $523 million and HK $497 million respectively. The net profit in FY 18/19, FY 19/20, FY 20/21 was HK $12.3 million, HK $18.3 million, HK $28.7 million, but in the the first eight months of FY 21/22, its net loss was HK $13.9 million.
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According to the company’s prospectus, the company will use about 20% of the funds from the IPO to seize market share, another 19.2% to expand its workforce and support business strategies, and, finally, about 13.7% to acquire companies in e-commerce-related industries. It is worth noting that about 8.6% of the obtained funds will be used to expand the group’s services to customers in the Mainland of China (especially the Greater Bay Area).