1. IPO Details

Purpose of IPO

• Rongta is offering 18.40 million H-shares (16.56 M via international placement; 1.84 M public Hong Kong tranche).

• IPO proceeds (~HK$148 million at assumed mid-price) will be allocated to:

  • 36.5% for expanding product portfolio & R&D

  • 33.4% to enhance production efficiency

  • 20.1% for sales network expansion

  • 10% for working capital 
    → Clearly growth-focused rather than debt repayment.

Oversubscription

• Retail tranche was 16× oversubscribed

 Placement & Share Count

• Total offered: 18.40 M shares.

• Post-IPO share base: Approx. 947.3 M–1.14 B H-shares

• Day‑1 outlook: Heavy oversubscription and growth-linked capital use suggest a strong debut is likely.

Institutional & Anchor Investors

• International tranche (~16.56 M) fully allocated to institutional/anchor investors.

• Retail tranche (1.84 M) heavily oversubscribed—16×, suggesting strong public interest

Conclusion: A solid anchor base and strong retail appetite position the IPO for a commendable listing.

Bankers, Underwriters & Sponsors

• Sponsor: Yue Xiu Capital Limited.

• Underwriters/Bookrunners include: Yue Xiu Securities, ABCI Securities, BOCI Asia, CCB Intl, CMB Intl, CMBC Securities, Huafu, Livermore, Patrons, Zhongtai Intl

Assessment: A broad syndicate led by a reputable sponsor increases likelihood of a well-managed and successful listing.

Company Overview

Business & Industry

• Manufacturer of automatic identification and data capture (AIDC) hardware—POS/receipt printers (~69.5%), smart scales, POS terminals, consumables (total ~140 countries)

• AIDC global market has grown from US$60.8 B (2018) to US$90.1 B (2023), +8.2% CAGR—ongoing uptrend

Financial Health

• No full financials available. NAV estimated at HK$3.18–3.54/share; market cap ~HK$10.0–12.0 based on IPO range

Market Position

• Leading supplier in China with diversified global clientele across multiple industries.

Management Team

• Xu Kaiming – Chairman, President, General Manager, Executive Director (38.53% SH).

• Xu Kaihe, Lin Yanqin – Executive Directors.

• Independent NEDs: Huang Liqin, Lim Kim Huat, Yu Xiaoou

Market Context & Conditions

a. Sector & Trends

• AIDC demand continues to grow globally, supported by retail digitalization, logistics, warehousing, and e-commerce .

b. IPO Timing

• Subscription period: 30 May–4 June 2025.

• Listing date: 10 June 2025 

c. Economic Environment

• Favorable regulation; demand supported by rise in retail and warehouse automation.

d. News & Sentiment

• Part of a broader surge in Hong Kong IPOs; overshadowed by momentum-driven listings

e. Market Outlook

• High public oversubscription and thematic growth tailwinds make the listing environment positive.

f. Prospectus Insights

• Detailed R&D investment, expansion goals, and global footprint suggest long-term strategy.

g. Risk Factors

• Intense competition (AIDC market very crowded), limited entry barriers . slowdown in retail/logistics adoption; R&D execution uncertainties.

h. Growth Strategy

• Expand product lines, strengthen manufacturing, and global penetration.

i. Ownership & Lock‑In

• Substantial holdings: Xu Kaiming (38.5%) + Xu Kaihe and directors.

• Sponsor Yue Xiu is overall coordinator; Hong Kong rules likely impose standard lock-ups.

Peer Comparison

Allotment Update

• Retail allocation was tight with 16× oversubscription.

• Institutional tranche fully filled.
  → Suggests allocations will be strong and day-one demand intact.

Final Evaluation

• Listing Outlook: Likely to debut above offer range.

• Estimated First-Day Price Range: HK$11.50–13.00 (20–30% upside potential).

• Subscription Advice: Attractive for investors aiming for short- to mid-term gains and targeted growth exposure in AIDC hardware. Speculative due to intense competition but backed by strong demand and investor interest.

Prospectus Download

Download the prospectus from HKEX here

Thank you