Softcare, a manufacturer of baby diapers, rose 45% in Hong Kong's grey market trading.

Softcare is a multinational hygiene products company focused on emerging markets in Africa, Latin America, and Central Asia. It specializes in the R&D, manufacturing, and sales of baby diapers, training pants, sanitary napkins, and wipes under brands like Softcare, Veesper, Maya, Cuettie, and Clincleer. Its products are sold in over 30 countries across West, East, and Central Africa.

In the first four months of this year, East Africa contributed 46.5% of SOFTCARE’s revenue, followed by West Africa (39.5%), Central Africa (10.6%), Latin America (3.3%), and Central Asia (0.1%). According to Frost & Sullivan, the company ranked first in Africa’s baby diaper and sanitary napkin markets by 2024 sales volume, with shares of 20.3% and 15.6%, respectively. By revenue, it held the second position in both segments, with 17.2% and 11.9% market shares.

Founders Shen Yanchang and Yang Yanjuan, a Chinese couple, jointly hold 64.42% of the company. Shen worked in Nigeria in 1997 before returning to mainland China in 2004 to start the business. Their registered address is listed in Hong Kong’s Kai Tak district.

SOFTCARE secured cornerstone investments totaling US$139 million (HK$1.08 billion) from BA Capital, Arc Avenue, Arcane Nexus, Beijing Shunao, CDH Emerging Markets, HCEP, NewTrails, Southern Fund, Wells Fargo Fund, E Fund, Charisma Mega, TruMed, Qihuirunjin, ChinaAMC (HK), and Jane Street. At the upper price limit of HK$26.2, cornerstone subscriptions account for 45.34% of the initial offering size.

Proceeds will be allocated as follows: - 71.4% for expanding production capacity and upgrading production lines; - 11.6% for marketing and promotions in Africa, Latin America, and Central Asia; - 4.7% for strategic acquisitions in the hygiene products sector; - 0.4% for CRM system upgrades and global operational implementation; - 2.6% for management consultancy services on new markets and products; - 9.3% for working capital and general corporate purposes.