CICC Assists CMGE in Listing on HKEX

On Oct 31, 2019, CMGE Technology Group Limited  (“CMGE” or “the Company”,0302.HK) is successfully listed on the main board of Hong Kong Stock Exchange. The offering size is 461,000,000 shares, representing 20.4% of the enlarged share capital (assuming the Over-Allotment Option is not exercised), or 530,150,000 shares, representing 22.8% of the enlarged share capital (assume the Over-Allotment Option is fully exercised). The final offer price was determined at HK$2.83 per share, and gross proceeds from the Global Offering is estimated to be HK$1.31 billion (assuming the Over-Allotment Option is not exercised), or HK$1.50 billion (assuming the Over-Allotment Option is fully exercised). CICC acts as Joint Sponsor, Joint Global Coordinator, Joint Bookrunner and Joint Lead Manager of this IPO. Kuaishou, Lee Ka-kit (Chairman of Henderson), Bilibili, Weibo, 37 Interactive, China Literature and Ourpalm are the cornerstone investors. Hong Kong Public Offering was oversubscribed by over 500x and International Offering was covered by close to 20x at the high end of price range. CICC helped CMGE achieve listing successfully in a volatile market.

CMGE is a leading IP-based game operator and publisher, focusing primarily on IPs relating to well-known cultural products and art works, such as icons or characters from popular animations, novels, and motion pictures. CMGE owns 68 proprietary IPs, including Legend of Sword and Fairy, Xuan Yuan Sword and Monopoly, and holds licenses over 31 IPs, including One Piece, Dragon Ball and Naruto. According to Analysys, amongst all Chinese independent mobile game publishers, CMGE ranked first in terms of cumulative revenue generated from publishing IP-based games, and ranked first in terms of the total number of published IP-based games from January 1, 2015 to June 30, 2019, and had the largest IP reserve as of June 30, 2019. The Company launched various popular mobile games, including Fighter of Destiny, the World of Legend – Thunder Empire and One Piece – the Road of the Strong, and owns a strong game pipeline. In the future, the Company is devoted to maintain its leadership as an IP-based game publisher, further strengthen its mobile game ecosystem founded on IPs, and explore the opportunities of international business.

CICC has taken the lead in all aspects of the preparation and execution of the project with the highest standard and always stand for the Company’s interest, acting as the lead Joint Sponsor and Joint Global Coordinator. In a volatile market of Hong Kong, CICC grasped the market window and achieved the full coverage at the low end of price range on the first day of book-building prior to the Hong Kong Public Offering, and helped build up an excellent momentum and laid a solid foundation for later orders and the successful listing. CICC also helped introduce various quality investors to the IPO.

As a leading investment bank with “Chinese Roots, International Reach”, CICC will continue to utilize its capital market expertise as well as its seamless cooperation of onshore and offshore businesses to provide continuous support to our customers in terms of introduction of global investors, reaching international capital market, and promoting global business development.