Weilong’s listing has a wave of “30% discount”, Tencent and other giants suffer

On December 5, Weilong announced on the Hong Kong Stock Exchange that it will issue shares from December 5 to 8, 2022. It plans to sell 96.397 million shares globally at a price of 10.4-11.4 Hong Kong dollars per share, with a maximum fundraising of 11 million yuan. billion Hong Kong dollars, the company’s market value is about 24 billion Hong Kong dollars, which is almost 30% off the pre-listing valuation. The list of investors before the IPO includes CPE Yuanfeng, Hillhouse Capital, Sequoia China, Tencent, Yunfeng Fund and other investment giants. Weilong’s prospectus shows that on the day of the company’s listing, these investment institutions directly lost 55.11% . | Related reading (China Securities Journal)

Zhong Hongda

Weilong, as the first Latiao, once attracted everyone’s attention. Before going public last year, both its performance and financing were very impressive. From 2017 to 2019, Weilong’s revenue maintained a double-digit growth rate every year. This is a very impressive result. After a round of financing in March this year, Weilong was valued at 70 billion yuan, which is more than the combined market value of Qiaqia, Three Squirrels, and BESTORE. However, its listing process not only experienced discounts, but the stock price has also become more and more miserable. This may have a lot to do with the consumption environment in which Weilong is located. For consumer goods with relatively low unit prices like Weilong, the impact of shrinking consumption is greatly reflected in the stock price.

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