Composite material trench cover manufacturer BAOGAI (08090) has concluded its public offering, which ran from June 29, 2026, to July 3, 2026.

Market information indicates that the offering has generated HKD 19.597 billion in margin financing from brokerages. Based on a public offering fundraising target of HKD 12.31 million, this translates to an oversubscription level of approximately 1,581.99 times.

The company plans to issue 14.47 million H shares, with approximately 10% allocated to the public offering and about 90% to the placing. The offer price is set between HKD 6.15 and HKD 8.51 per share, with a board lot size of 500 shares, making the minimum subscription amount HKD 4,297.91.

BAOGAI is expected to commence trading on the GEM board of the Hong Kong Stock Exchange on Wednesday, July 8, with Zhongtai International as its sole sponsor.

According to its prospectus, the company was founded in 2009 and has established itself as a specialized manufacturer in China's composite material trench cover industry, primarily producing composite covers for engineering and infrastructure applications.

Data shows that in 2025, the company ranked first in China's cable trench cover and composite cable trench cover markets by market share, and third in the broader trench cover industry.

BAOGAI manufactures and supplies a comprehensive range of high-performance composite trench cover products, including cable trench covers, drainage trench covers, and manhole covers. These products are customizable in terms of specifications and configurations to meet client requirements.

The composite materials used primarily consist of resin-based matrices reinforced with glass fibers. The company's product portfolio accommodates non-standard sizes, special functions, and client branding, catering to customized needs.

The company also integrates services into all its products, utilizing IoT technology to advance the intelligent upgrade of its smart manhole cover management system.

Its products can be further categorized by primary manufacturing process: BMC, a thermoset composite containing chopped strand glass fiber, and SMC, a sheet molding compound typically containing glass fiber roving. The average glass fiber content is about 1.8% for BMC products and approximately 15.0% for SMC products.

Financially, for the years 2023, 2024, and 2025, the company reported revenues of approximately RMB 137 million, RMB 131 million, and RMB 144 million, respectively. Profit attributable to equity shareholders for the same periods was RMB 25.22 million, RMB 21.62 million, and RMB 24.05 million.

Regarding the use of IPO proceeds, approximately 30.0% of the net funds raised will be allocated to establishing a production line for resin-based composite products embedded with continuous carbon fiber. About 25.0% will be used to upgrade existing production lines through automation technology.

Roughly 15.0% is earmarked for expanding research and development, including purchasing advanced equipment and testing consumables to enhance R&D output. Around 20.1% will be directed towards further expanding global sales and marketing channels to boost the brand's international recognition, market penetration, and service efficiency. The remaining 9.9% will serve as general working capital.