IPO News | Zhuoyue Ruixin (02687) closed its prospectus and recorded a margin subscription amount of HK$191.2 billion and an overpurchase of 3767.5 times

The Zhitong Finance App learned that Zhuoyue Ruixin (02687) offered shares at noon from November 28 to December 3. The subscription has recently ended and is expected to be listed for sale on December 8. Market statistics show that as of 10 a.m. on Wednesday (December 3), the company recorded a margin subscription amount of HK$191.2 billion, an overpurchase of 3767.5 times based on a public sale of HK$50.74 million.

According to the issuance plan, Zhuoyue Ruixin plans to issue 6.667 million H shares in Hong Kong, 10% of which will be publicly sold in Hong Kong. The offering price ranges from HK$62.26 to HK$76.10, raising up to HK$510 million. For each lot of 100 shares, the entry fee for the first hand is approximately HK$7,686.8.

In terms of the use of capital raised, 36.7% is used for R&D; 31.8% is used to improve customer service and support capabilities; 21.5% is used to establish one or two knowledge map development centers in selected cities to enhance knowledge map construction, production and delivery capabilities and efficiency; and 10% is used for working capital and general corporate purposes.

According to the prospectus, Zhuoyue Ruixin is a digital solution provider for college teaching in China, dedicated to the development, delivery and operation of digital education content, digital teaching scenario services and products in colleges and universities. Product services cover all important aspects of teaching, learning, practice, testing, evaluation, management, etc. According to Frost & Sullivan, in 2023, Zhuoyue Ruixin ranked second in revenue among all companies in the digital higher education teaching market in China, with a market share of 3.4%; it ranked first in revenue among all companies in the Chinese higher education digital teaching content production market, with a market share of 6.2%.

In 2022, 2023, and 2024, Zhuoyue Ruixin's revenue was approximately RMB 400 million, RMB 653 million, and RMB 848 million respectively. In the same period, the company's net profit was -59.11 million yuan, 81.421 million yuan, and about 105 million yuan, respectively.