Lung Fung Group (02290) has initiated its public offering from May 28, 2026, to June 2, 2026. The company plans a global offering of 125 million shares, with 10% allocated to the Hong Kong public offering and 90% to the international offering. An over-allotment option of up to 15% is also included. The offer price is set between HK$5.18 and HK$6.38 per share, with a board lot size of 500 shares. The H-shares are expected to commence trading on the Stock Exchange at 9:00 a.m. on June 5, 2026.

For the fiscal years 2023, 2024, and 2025, total revenue was HK$1.094 billion, HK$2.021 billion, and HK$2.461 billion, respectively, representing a compound annual growth rate of 50.0% over the three-year period. The company reported a loss of HK$27.1 million in fiscal 2023, followed by net profits of HK$145 million in fiscal 2024 and HK$170 million in fiscal 2025, marking a growth of 17.9% over the two-year period.

Assuming an offer price of HK$5.78 per share (the mid-point of the price range), the company estimates net proceeds from the global offering to be approximately HK$672 million, after deducting underwriting commissions and estimated expenses. The company intends to allocate the net proceeds as follows: approximately 36.6% is expected to be used for expanding, strengthening, and optimizing the company's physical and online sales network; about 3.5% for brand management and marketing to enhance the group's public awareness and the effectiveness of marketing activities; around 3.5% for strengthening the supply chain capacity by expanding and upgrading existing procurement offices and warehouses in Japan and warehouses in South Korea; approximately 11.4% for upgrading and improving the company's information technology systems; about 20.0% for repaying outstanding loans, primarily certain supplier financing arrangements and revolving loans with interest rates ranging from 3.5% to 4.5% and tenors of 3 to 6 months; around 15.0% for seeking selective strategic investments and acquisition opportunities, as well as further developing strategic partnerships to expand the company's business scale and geographical coverage; and approximately 10.0% for general working capital purposes of the group.