Key Takeaways:
- EACON offers 26.1M shares at HKD81.16-HKD87.92, raising up to HKD2.3B.
- Eleven cornerstone investors including Zijin Mining and Fidelity subscribe USD146M.
- Trading on the Main Board starts July 8 with net proceeds of HKD2.07B.
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EACON launches HK IPO at up to HKD87.92, raising HKD2.3B
EACON (07687.HK) launched its Hong Kong IPO Tuesday, offering 26.1 million shares at up to HKD87.92 to raise as much as HKD2.3 billion.
The IPO attracted 11 cornerstone investors, including Zijin Mining's ZIJINNING unit, Fidelity International and Barings, subscribing for a combined USD146 million in shares, the company said.
The offer comprises 26.13 million H shares, with 10% reserved for Hong Kong retail investors and the remainder for international institutions. At the mid-point price of HKD84.54, net proceeds are estimated at HKD2.07 billion. The subscription period runs from June 29 through July 3.
The listing gives EACON, a mainland Chinese provider of autonomous driving solutions for mining operations, access to Hong Kong's capital markets. First-day trading on July 8 will test institutional appetite for the niche autonomous mining technology sector.
EACON develops autonomous driving systems for mining trucks and heavy equipment used in open-pit mines across China. The company counts major mining operators among its potential clients as the industry seeks to improve safety and reduce labor costs through automation.
The HKD2.07 billion in net proceeds will fund research and development, expansion of its autonomous fleet and working capital, according to the prospectus. The company did not disclose a breakdown of the allocation.
Other cornerstone investors include Indus Funds, Jain Global, REGAL, GF Fund and CDH. The lockup period for cornerstone investors was not disclosed.
The pricing gives EACON a market valuation that will be determined on listing day. Investors will watch first-day trading on July 8 for signals on demand for Hong Kong-listed autonomous driving plays, a niche segment with few directly comparable peers.
This article is for informational purposes only and does not constitute investment advice.
