On the last trading day of June, there were 7 companies launching IPOs on the Hong Kong Stock Exchange at the same time, why did they gather for IPOs at the end of June?
The reason is that if the company that has submitted the statement cannot start the IPO through the hearing before June 30, then it needs to supplement the semi-annual report data, not to mention the trouble, and also delay the listing process. The Hong Kong Stock Exchange understands this, and at the same time, the Hong Kong Stock Exchange is also a listed company, and it also needs to do performance, so the two hit it off and gave the green light all the way to promote the IPO.
1. Prospectus information
Second, the company profile
Baiwang Co., Ltd., founded in 2015, as an enterprise digital solution provider, focuses on providing SaaS financial and tax digitalization and data-driven intelligent solutions through the Baiwang cloud platform.
In 2023, in terms of revenue, Baiwang Cloud ranked first in China's cloud digital market for financial and tax-related transactions, with a market share of 7.1%; Ranked second in China's digital market for finance and tax-related transactions, with a market share of 4.9%.
Financial data show that in the past 2021~2023, the operating income of Baiwang shares will be 454 million, 526 million and 713 million yuan respectively, and the revenue will gradually increase, but the earning ability is not satisfactory. During the same period, the company continued to lose 448 million yuan, 156 million yuan and 359 million yuan respectively, with a cumulative loss of 960 million yuan in three years.
The main reason for the increase in revenue and not profit of Baiwang shares is that the company develops its business through agents, and the flow is not in its own hands. Under the fierce market competition, Baiwang had to continuously increase the rate of marketing agents, resulting in high operating costs.
The company's business can be divided into four parts: cloud-based financial and tax digital solutions, data-driven analysis services, local financial and tax digital solutions, and others.
The proportion of data-driven analysis service revenue continued to rise, becoming the largest business of Baiwang shares. The business includes digital precision marketing services and risk management services. Among them, digital precision marketing services are to help financial institutions promote credit products related to the financing of small and micro enterprises; The risk management business is based on its own invoice and financial data assets to provide licensed financial institutions with small and micro enterprise business reporting services, user analysis services, risk analysis services, etc., and provide risk control decision-making basis for financial institutions to lend. In other words, this part of Baiwangyun's business is actually a loan for small and micro enterprises.
Before listing, Baiwang shares experienced six rounds of financing, with a total of 1.52 billion yuan. The investors behind it include Jiuzhao Fund, Shanghai Volkswagen, Fosun Group, Shenzhen Capital Group, Oriental Fuhai, Alibaba and many other well-known institutions.
Alibaba is the second largest shareholder of Baiwang shares, and because of this relationship, Taobao agreed to grant the company the right to the online invoice platform under the brand name of "Alibaba Invoice Platform" in 2023, and let Baiwang Cloud act as a tax service provider on the platform.
3. Comprehensive reviews
To put it simply, Baiwang is a company that issues electronic invoices and provides loans to small and micro enterprises. The fourth phase of the golden tax being promoted by the state and the requirement for banks and other financial institutions to lend to small and micro enterprises are conducive to the development of the company's business.
In the Hong Kong stock market, Kingdee, Chanjet and Baiwang shares are almost the same, Kingdee has not achieved profitability in recent years, Chanjet has just turned a profit last year after several years of losses, indicating that this industry is extremely involuted, it is difficult for everyone to make money, and they have to continue to boil. However, Baiwang shares operating cash flow is tight, the "hematopoietic" ability is insufficient, and now there are 240 million cash on the account and 1.55 billion debts, which is difficult to survive.
Baiwang shares accounted for only 4.1% of the total proportion of shares, according to the median offer price of 38 Hong Kong dollars, raised about 352 million, the cornerstone locked 260 million, and the circulation of 92 million. Note that if the oversubscription is 100 times and the callback is 50%, the circulating order is 176 million.
Although this is an H-share with a total market value of 8.56 billion, the circulating stock is only 3.4 billion, and it needs to rise by 80% to meet the threshold of 6.2 billion to enter the Hong Kong Stock Connect. The first half of the year has just passed, and there is still a long time before the review of the Hang Seng Composite Index in the second half of the year, and the company will not rush to raise the stock price.
Baiwang shares are currently marginal 1 times, and the final probability will not be overpurchased 15 times to start the callback, Group A and B each 4630 hands, according to 8000 people to subscribe, it is estimated that the rate of winning a hand is 10%, this vote if the subscription is cold.