The public offering for the diversified chemical conglomerate BEFAR GROUP (06745) has concluded, following its subscription period from June 30 to July 7, 2026.

Market information indicates the offering has drawn significant interest, with brokerages providing approximately HK$15.282 billion in margin financing for the retail portion.

Against a public offering size of HK$126.41 million, this represents an oversubscription level of approximately 119.89 times.

Details of the Offering

The company plans a global offering of 352 million H shares, with 10% allocated for the Hong Kong public offering and 90% for international placement.

The price range has been set between HK$3.05 and HK$3.59 per share, with a board lot size of 1,000 H shares.

Trading of the H shares on the Stock Exchange of Hong Kong is scheduled to commence at 9:00 a.m. on Friday, July 10, 2026.

Huatai International and CCB International are acting as the joint sponsors for the listing.

Cornerstone Investors

The offering has attracted a group of cornerstone investors, including Beijing Yi'an, Luhua Daosheng, Aurora SF, China Hongqiao, Hyperion Venture, Tiantu, and Shengwei.

Their aggregate investment commitment totals US$49.8 million.

Based on an assumed final offer price of HK$3.32 per share, these cornerstone investors will subscribe for approximately 118 million H shares.

This represents about 33.41% of the total shares offered in the global offering and roughly 5.01% of the company's total issued share capital post-offering.

Company Profile and Operations

Established in 1968, BEFAR GROUP is a comprehensive chemical group with over five decades of industry experience.

Its primary business involves the production and sale of chlor-alkali chemicals, C3/C4 chemicals, and wet electronic chemicals.

Key products include caustic soda, propylene oxide, MTBE, and electronic-grade hydrofluoric acid.

The company benefits from an integrated industrial chain, enabling it to produce a portion of its required raw materials internally.

This includes an annual designed capacity of about 500,000 tonnes of raw salt at its Zhanhua base, meeting roughly 50% of its caustic soda production needs, and an annual designed capacity of approximately 600,000 tonnes of propylene at its Beihai base, sufficient to cover all propylene consumption for its propylene oxide production.

Financial Performance

For the years 2023, 2024, and 2025, the company reported revenues of approximately RMB 7.306 billion, RMB 10.228 billion, and RMB 14.836 billion, respectively.

Annual profits for the same periods were approximately RMB 399 million, RMB 217 million, and RMB 235 million.

Use of Proceeds

According to the company's strategy, the net proceeds from the global offering are intended to be allocated as follows: approximately 40% for the construction of a source-grid-load-storage project in Binzhou Beihai Economic Development Zone; about 30% to enhance research and development capabilities; roughly 10% to establish a new electronic chemicals production facility in Yangxin, Binzhou, with an annual designed capacity of 7,000 tonnes for products like stripping etchants; around 10% to expand the overseas sales and service network; and the remaining 10% for general working capital and maintaining operational flexibility.