CICC Assists Broad Homes in Listing on the Main Board of HKEx

On November 6th, 2019, Changsha Broad Homes Industrial Group Co., Ltd.  (“Broad Homes” or the “Company”, 2163.HK) was successfully listed on the Main Board of Hong Kong Stock Exchange with a pre-greenshoe offering size of HK$1.18 Bn. CICC acted as Lead Sponsor, Lead Global Coordinator, Lead Bookrunner, Lead Joint Manager. Sole Settlement Agent and Stabilizing Manager in the transaction.

 

Broad Homes is a domestic pioneer and leader in construction industrialization and a global leading construction technology company in this field. The Company’s precast concrete (PC) units and their manufacturing equipment businesses occupy 13.0% and 38.3% of domestic market, respectively, both the top market shares in China. Supported by national strategies, China’s prefabricated construction industry has grown at an average speed of c. 170% annually in the past three years. Boasting an exclusive, nationwide network covering over 100 Chinese cities and a world-leading technology platform for software development and intelligent manufacturing, the Company recorded a gross margin of 32% in 2018, higher than the average level of 5-15% in the industry. For the six months ended June 30, 2019, the Company’s total new contract value was RMB2.95 Bn, including a 95.2% increase from that for the six months ended June 30, 2018. As of June 30, 2019, the Company’s total backlog was RMB6.22 Bn.

Broad Homes is the first company from the PC prefabricated construction industry to complete IPO in global capital market and the second largest IPO enterprise from prefabricated construction industry in history. Meanwhile, it will also become the first Hunan-based H-share enterprise to be successfully listed in Hong Kong in the past nine years. Acting as Lead Sponsor, Lead Global Coordinator, Lead Bookrunner, Lead Joint Manager, Sole Settlement Agent and Stabilizing Manager, CICC took the lead in all work lines, and promoted smooth execution of the deal. Based on its solid knowledge of the prefabricated construction industry and the Company’s business model, CICC took the full responsibility for assisting the Company to organize its investment highlights; during the marketing stage, CICC leveraged its strengths to provide exclusive assistance for the Company to introduce all the three cornerstone investors, including Zoomlion, Gemdale, etc., which jointly covered c. 35.72% of the total offering size, while helping to introduce a number of renowned international funds. CICC made top contributions to both international placement and bookbuilding results among all participating investment banks, approximately 90% of the offering size.

In the future, CICC will stay committed to our philosophy of Chinese roots and international reach, and utilize our extensive capital market experience as well as seamless domestic and overseas business network to introduce quality global investors to the clients, help our clients to access to the international capital market and promote their global business development.