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Baozun seeks additional listing in Hong Kong
Posted on Friday, 18 September 2020 10:47
Cayman Islands-incorporated, Nasdaq-listed Baozun is trying its hand at a secondary listing in Hong Kong that would give a market capitalisation of roughly HKD 23.84 billion (USD 3.08 billion).
The Shanghai-headquartered e-commerce company is selling 40.00 million new shares at a maximum of HKD 103.90 apiece, with a view to being admitted to trading on 29th September.
Its pricing equates to unaudited pro forma adjusted consolidated net tangible assets per share of CNY 28.70, or HKD 31.48 apiece.
Co-founder, chairman and chief executive Vincent Wenbin Qiu said the rise of this sector has transformed not only the world, but also the retail landscape in China.
Rapid growth of consumer-to-consumer e-commerce since 2003 has been driving the development of online payment and logistics services.
Since 2008, large businesses and brand owners have been attracted to the online market, which has particularly boosted brand-owner-to-consumer e-commerce, over the past decade, making it a mainstream retail channel.
These trends have profound implications for brand owners and their operating environment, the company said in its prospectus.
China has the largest online shopping market in the world, with gross merchandise value reaching CNY 9,990 billion in 2019, accounting for 24.1 per cent of the total retail sales.
Founded in 2007, Baozun has seen the number of brand partners rising from one to 250 and its category coverage from one e-commerce vertical to eight.
Annual gross merchandise volume rose from CNY 1.00 million in the first year to CNY 44.00 billion in 2019.
Baozun has offices in Shanghai, Suzhou, Chengdu, Hong Kong and Taiwan, and plans to establish a presence in Singapore, Malaysia, Japan and South Korea.
Proceeds from the listing will expand the group’s brand parent network, bolster digital marketing and fulfilment capabilities, and enable it to enter into strategic alliances.
Zephyr, the M&A database published by Bureau van Dijk, shows 38 secondary listings have been announced globally this year.
Baozun’s will be the fifth-largest of 2020 to date.
© Zephus Ltd