Quzhi Group (00917.HK) recently launched its IPO application, and is expected to be listed on the Hong Kong Stock Exchange (HKEX) on May 27, 2024, with Haitong International as the sole sponsor. Quzhi Group plans to offer a total of 19,704,000 shares globally, of which 90% will be offered via international placement and 10% via public offering. The offering price per share ranges from HK$25.00 to HK$29.70, with 200 shares per trading lot. The maximum proceeds to be raised are approximately HK$585 million. Assuming the offering price per share is set at HK$27.35 (the midpoint of the offering price range) and the overallotment option is fully exercised, Quzhi Group estimates that the total listing expenses will be approximately HK$73.9 million, including 3% underwriting commission, 1% discretionary underwriting bonus, HKEX listing fees, SFC transaction levy, HKEX transaction fee, Financial Services and the Treasury Bureau transaction levy, legal and other professional fees, printing and other expenses. For this IPO, Quzhi Group has introduced one cornerstone investor, namely Golden Rich Fortune, which will subscribe for US$10 million (approximately HK$78.2 million) worth of offering shares. The sole general partner of Golden Rich Fortune is China Northern Securities Group Co., Ltd., and the sole investment manager and fund manager is China Northern Global Asset Management Co., Ltd. The net proceeds from this IPO of Quzhi Group are approximately HK$465 million (calculated based on the midpoint of the offering price range): 32% will be used to expand the company's vending machine network and improve market penetration within the next four years; 13% will be used to optimize marketing services in the next four years, focusing on enhancing user operations and the company's service matrix; 15% will be used to increase the company's brand awareness, and further expand its brand customer base within the next three years; 20% will be used to strengthen the company's technical capabilities and R&D efforts to improve operational efficiency within the next four years; 10% will be used to seek strategic alliances and acquisitions; 10% will be used for the company's general working capital and general corporate purposes. For this IPO of Quzhi Group, Haitong International acts as its sole sponsor, sole overall coordinator and sole global coordinator. Other underwriters include Zhongtai International, CCB International, ABC International, SPDB International, Fosun International Securities, BoComm International, Huafu Jianye Securities, Futu Securities. According to the prospectus, in the post-listing shareholding structure of Quzhi Group, Ms. Yin Juehui holds 27.52% of the shares through Beyond Branding controlled by a trust; Ms. Yin Julian (younger sister of Ms. Yin Juehui) holds 3.36% of the shares through Q-robot controlled by a trust; Mr. Cao Liwen holds 3.36% of the shares through KioskJoy controlled by a trust; Mr. Wu Wenhong holds 1.68% of the shares through INSIGMA; Mr. Huang Aihua holds 1.68% of the shares through NeoBox; Mr. Qian Jun holds 1.68% of the shares through Q-robot shop; The aforementioned shareholders are acting in concert parties, acting in accordance with the instructions of Ms. Yin Juehui, and collectively hold voting rights exercisable for 39.27% of the total shares. Mr. Yeung Man holds 8.61% and 2.93% of the shares through Banyan Pacific and BPC respectively; Legend Capital holds 8.37% of the shares through Shanghai Junna; Mr. Zhang Fan holds 0.99% of the shares through QFUN; Xiamen C&D Inc. holds 6.85% of the shares; Mr. Wang Qing holds 1.09% of the shares through QFUN Tech; Mr. Liu Xiaoying, founder of Eagle Fund, holds 2.97% of the shares; Shanghai Yingzhisu holds 0.30% of the shares; Shanghai Xiangyiqu holds 0.23% of the shares; Shanghai Yingmaisheng holds 1.29% of the shares; Mr. Qi Zhenlin holds 0.23% of the shares through Beyond Marketing; Shanghai Yuanzhizhi holds 1.52% of the shares; Shanghai Yuanyuqu holds 8.11% of the shares; Yuanqi Phase III holds 2.66% of the shares; Mr. Hu Minglie holds 0.53% of the shares through Yuanzhan; Mr. Chen Haohua holds 0.97% of the shares through Sinoace; Shanghai Hongjiuqu holds 3.22% of the shares; Anji County Finance Bureau holds 2.35% of the shares through Ai Liang Shan. The remaining shares are held by other public shareholders, accounting for 7.50%. Founded in 2013, Quzhi Group is a marketing service provider focusing on outdoor marketing for fast-moving consumer goods (FMCG). Leveraging its widely distributed vending machine network with interactive marketing functions and combining it with technology-powered online platforms, it enables target consumers to obtain convenient and interesting experiences when testing and acquiring FMCG products, while collecting necessary interactions and feedback. The vending machines developed by Quzhi Group are equipped with various modules, including scent emission, motion recognition and voice interaction, to provide highly efficient interactive machine marketing services. According to data from CIC Consulting, the company is the only enterprise in China that provides such services. According to data from CIC Consulting, in terms of revenue in 2023, Quzhi Group is the fourth largest FMCG outdoor marketing solution provider in China. https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0517/2024051700010_c.pdf © 2021 Meishun (Hong Kong) Management Consulting Co., Ltd. and Meishun (Hangzhou) Management Consulting Co., Ltd. All rights reserved. Meishun Meiyin (Hangzhou) Consulting & Management Co., Ltd. is a domestic subsidiary of Hong Kong Meishun Management Consulting Co., Ltd. under the same ultimate controlling party. Both companies share the same ultimate controlling party and are under the same Chinese management, and comply with the laws of Hong Kong and the Mainland of China.