The public offering period for LIULIUMEI (06658) concluded on June 10th. The company plans to issue 11.461 million H shares, with 10% offered to Hong Kong retail investors. The offer price is HK$43.58 per share, aiming to raise approximately HK$500 million. The minimum board lot is 100 shares, with an entry cost of around HK$4,402 per lot. Trading of the shares is expected to commence on June 15th, with China Securities and Guoyuan International acting as joint sponsors.
As of the morning of June 10th, the retail portion of the offering had attracted margin financing applications totalling approximately HK$215.41 billion. Against a public offering tranche size of about HK$49.96 million, this represents an oversubscription of over 4,310 times.
Company Background and Market Position
According to its prospectus, LIULIUMEI is a fruit-based snack company primarily focused on products made from green plums (Qingmei). Guided by a product development strategy centered on the plum, the company has established a diverse portfolio ranging from classic products using traditional techniques to items incorporating various flavors to cater to different tastes. Since launching its classic brand "Liu Liu Mei" in 2001, the company has been dedicated to advancing technology within the plum product industry and exploring the culinary potential of the plum's sour flavor.
Data from Frost & Sullivan indicates that in 2024, the company ranked first in China's fruit-based snack industry by retail sales, capturing a 4.9% market share.
Product Portfolio and Financial Performance
The company's plum jelly product, launched in 2019, quickly gained significant consumer attention. In 2024, LIULIUMEI also ranked first in China's natural ingredient jelly segment by retail sales, commanding a 45.7% market share.
Financially, for the fiscal years 2023, 2024, and 2025, the company reported revenues of approximately RMB 1.322 billion, RMB 1.616 billion, and RMB 1.711 billion, respectively. Corresponding annual profits for the same periods were approximately RMB 99.231 million, RMB 148 million, and RMB 182 million.