A new star emerges in the consumer goods sector.

Hong Kong's stock exchange has welcomed its first Middle Eastern-headquartered listed company. SOFTCARE, bearing the distinction of being the first Middle Eastern firm to list in Hong Kong, enjoyed a strong start with its IPO oversubscribed by 2,358 times. At the time of writing, its shares surged 35.8% to HK$35.58, pushing its market capitalization past HK$21.5 billion and cementing its status as a standout in the consumer sector.

The groundwork for Middle Eastern companies listing in Hong Kong was laid earlier by Hong Kong’s Financial Secretary, Paul Chan, who highlighted strengthened financial cooperation between Hong Kong and Saudi Arabia. He noted that more Middle Eastern firms are expected to follow suit with primary or dual listings in Hong Kong.

**From Chinese Traders to African Factories**

On the surface, SOFTCARE is a Dubai-based multinational operating across Africa, but its true controllers are a Chinese couple—Shen Yanchang and Yang Yanjuan, both graduates of Harbin Engineering University in the early 1970s.

Shen’s journey began in 1997 when he moved to Nigeria as a procurement manager for a Hong Kong-owned manufacturer. Though health issues forced his return to China in 1999, a $200,000 procurement deal for a Nigerian supplier sparked his entrepreneurial vision. In 2000, he founded Guangzhou Aokeye Trading, the precursor to Sunda Group, sourcing goods like jeans, construction materials, and household appliances for African clients.

By 2003, intensifying competition drove Sunda to pivot toward local African markets. From 2004 to 2016, the group established sales networks and factories across Africa, producing detergent, diapers, and hardware. This expansion capitalized on Africa’s rapid urbanization and surging demand for household and hygiene products.

**41 Billion Diapers Sold Annually**

Sunda’s incubation of SOFTCARE in 2009 marked its entry into hygiene products, starting with diapers and sanitary pads in Ghana. After a 2022 restructuring, SOFTCARE became independent, headquartered in Dubai for logistical efficiency, and now operates in over 30 emerging markets.

Its IPO filing reveals steady growth: revenues climbed from $320 million in 2022 to $454 million in 2024, with net profits jumping from $18.39 million to $95.11 million. Infant diapers drive over 70% of revenue, while sanitary pads—growing at a 40.5% CAGR—are its fastest-growing segment. In 2024, SOFTCARE sold 4.123 billion diapers and 1.634 billion pads, capturing 20.3% and 15.6% of Africa’s market, respectively.

The company’s success hinges on affordability—its locally produced pads cost a third of Western brands—and high brand loyalty, with over 90% repeat purchase rates for its core brands.

**Twice Filing for IPO in a Year**

SOFTCARE first filed for a Hong Kong IPO in January but had to refile in July after its initial application lapsed. Its timing aligns with Hong Kong’s push for Middle Eastern listings, underscored by high-profile visits from officials like Chief Executive John Lee and Financial Secretary Paul Chan.

The backdrop includes deepening ties: in 2023, Hong Kong and Saudi stock exchanges signed a cooperation pact, and the city approved Saudi listings for secondary listings. By 2024, Saudi’s first Hong Kong ETF launched with HK$8.4 billion in assets, while Hong Kong accelerated plans for a Riyadh economic office.

With Africa’s diaper penetration at just 20%—far below global averages—SOFTCARE’s growth potential remains vast, fueling its bold IPO move.