IPO News | Impression Dahongpao (02695) was loaned by a brokerage firm about HK$37.8 billion and overbought 2,553 times

The Zhitong Finance App learned that the state-owned cultural tourism service company Impression Dahongpao (02695) offered shares at noon from December 12 to 17. According to market data, as of 11:00 a.m. on Wednesday (17th), Impression Dahongpao had received a margin loan of about HK$37.8 billion from the brokerage firm, which was 2,553 times more than the amount raised in the public sale of HK$14.8 million.

Impression Dahongpao plans to issue 36.1 million H shares, 10% of which will be publicly sold in Hong Kong. The offering price is HK$3.47 to HK$4.1, raising up to HK$150 million. Each lot of 1,000 H shares has an entry fee of HK$4141.4. Impression Dahongpao is expected to be listed on December 22, with Xingzheng International and Kaisheng as co-sponsors.

According to the prospectus, Impression Dahongpao is a state-owned cultural tourism service company headquartered in Wuyi Mountain, Fujian Province. According to Frost & Sullivan's data, based on sales revenue generated from cultural tourism shows, Impression Dahongpao ranked 8th in the Chinese cultural tourism performance market in 2024. The company's shares have been listed on the New Third Board since January 20, 2017 (stock code: 870608).

As mentioned in the prospectus, Impression Dahongpao's business includes three main business segments: (i) performance and performance services; (ii) Impression Cultural Tourism Town business; and (iii) ChaTang Hotel business.

Impression Dahongpao's performance and performance service division includes three main services: (i) a live landscape performance of the iconic “Impression Dahongpao”; (ii) a new performance “Moon Ying Wu Yi” launched in May 2025; and (iii) providing customized performances for corporate customers. These companies usually commission companies to perform at their special corporate events (such as team building events and annual meetings).

The directors intend to use the net proceeds from the global sale for the following purposes: (1) approximately 23.0%, which will be used to upgrade the Group's iconic performance “Impression: Dahongpao”; (2) Approximately 28.6%, which will be applied to (i) further developing the Impression Jianzhou Food Theme District in 2025, transforming it into a vibrant attraction to provide visitors with a performing arts experience other than existing service programs. (ii) Further develop the Group's Impression Cultural Tourism Town in 2026 to optimize the surrounding landscape, including the introduction of Binjiang Avenue. (iii) Complete renovation of the Wuyi Tea Expo 4A Scenic Area in 2026; (3) Approximately 20.0% will be used to obtain another high-quality cultural tourism performance project by injecting the Group's management experience and innovative operating model into the existing cultural tourism performance project. (4) Approximately 11.0% will be used for publicity work to enhance brand image and expand business influence. (5) Approximately 7.4% will be used to upgrade the Group's ticket management system and software. (6) Approximately 10.0% will be used for working capital and other general business purposes.