Since the implementation of Hong Kong's new IPO pricing rules on August 4, 2025, the remarkable profit-making effect has made new listings a market focus. Between August 4 and October 22, 24 companies went public, with only 2 falling below their issue price. Notably, 10 companies (41.66%) saw their shares surge over 100% on debut. This frenzy has set records, with Goldleaf International (08549) achieving a historic 11,000x oversubscription. Against this backdrop, investors are closely watching China's largest data intelligence software provider MININGLAMP-W (02718), which completed its offering on October 28 with a staggering 3,399x retail oversubscription. The shares are expected to begin trading on the HKEX on November 3, 2025.

MININGLAMP plans to issue 7.219 million Class A shares globally, with 10% allocated to Hong Kong public offering and 90% to international placement, plus a 15% over-allotment option. Priced at HK$141 per share (HK$5,696.88 per lot of 40 shares), the IPO represents 5% of total shares, valuing the company at HK$20.357 billion - a 56% premium over its Series F-3 financing round valuation in January 2024. The key question is whether this Tencent-backed company (with other notable investors like Kuaishou, Sequoia China, and Temasek) can perform in the current hot IPO market.

Post-listing free float stands at just 2.745%, with Series E-2 investors still underwater. MININGLAMP's IPO strategy reveals its strong desire to stabilize post-listing share price. First, it adopted a "mini-IPO" approach - the 7.219 million shares represent only 5% of enlarged share capital, reducing liquidity to support valuation. Second, it used Mechanism B, fixing the public offering ratio at the minimum 10% regardless of subscription demand, ensuring institutional allocation dominance. Additionally, seven cornerstone investors (including major shareholder Tencent via Huang River Investment) have locked up 45.1% of offered shares (assuming no over-allotment), agreeing to a 270-day lock-up. This leaves only 54.9% of offered shares (2.745% of total equity) freely tradable at listing, with a mere HK$559 million float.

This tight supply structure may facilitate future exits for early investors, some of whom remain underwater after five years. MININGLAMP has raised over $627 million across 27 funding rounds. While its $2.62 billion IPO valuation shows a premium to the Series F-3 round, it's still 15% below its 2020 peak of $3.05 billion (Series E-2). Major pre-IPO shareholders include Tencent (26.96%), Sequoia China (7.46%), Temasek (4.1%), and Kuaishou (2.48%).

Revenue growth becomes critical for valuation sustainability after narrowing losses. As China's top data intelligence software provider, MININGLAMP offers solutions spanning marketing intelligence (including its flagship Miaozhen System and WeCom-based tools), operational intelligence (deployed in 20,000+ restaurants and 46,000+ retail stores), and industry AI solutions (serving 135 Fortune 500 companies across retail, FMCG, automotive, etc.).

Revenue showed volatility: RMB1.269 billion (2022), RMB1.462 billion (2023), and RMB1.381 billion (2024). The dip reflects weak marketing demand during economic slowdowns and strategic shifts toward standardized operational intelligence products (with gross margins rising from 31.5% in 2022 to 55.3% in 2024). H1 2025 growth came from AI-enhanced marketing tools and upgraded conversational AI products.

Adjusted net losses narrowed sharply: RMB1.099 billion (2022), RMB174 million (2023), RMB45.1 million (2024), turning to a RMB24.9 million profit in H1 2025. Drivers include stable gross margins (53.2%, 50.1%, 51.6% for 2022-2024), declining R&D spend (59.2%, 32.9%, 25.6% of revenue), and operational efficiency gains.

Key takeaways: 1) AI-powered product upgrades are crucial for revenue growth amid macroeconomic challenges; 2) While cost optimization has driven profit improvement, MININGLAMP operates in a fragmented, hyper-competitive sector (holding just 3.8% market share despite being #1), meaning future earnings growth must come from top-line expansion and margin improvement.

Notably, its HK$20.357 billion valuation implies a steep 14.74x P/S multiple based on 2024 revenue (RMB1.381 billion), significantly higher than the sub-6x multiple for China's second-largest listed competitor (with over RMB5 billion revenue). While tight supply and market euphoria may support short-term performance, sustaining this premium valuation long-term requires accelerated revenue growth.