PATEO CONNECT Technology (Shanghai) Corporation

Date of Prospectus: September 22, 2025

PATEO CONNECT Technology IPO: Smart Cockpit Leader Sets Bold Course in Hong Kong Market Debut

IPO Snapshot: Key Offer Terms and Structure

PATEO CONNECT Technology (Shanghai) Corporation launches its highly anticipated initial public offering, targeting expansion and leadership in the fast-growing automotive intelligence sector.

• IPO Symbol: 2889 (Main Board, Hong Kong Stock Exchange)
• Offer Price: HK\$102.23 per H Share
• Total Offer Size: 10,436,900 H Shares (subject to Over-allotment Option)
• Hong Kong Public Offer: 1,043,700 H Shares
• International Offer: 9,393,200 H Shares
• Post-IPO Outstanding Shares: 149,991,249 Shares (assuming no exercise of Over-allotment Option and no Shares issued under Pre-IPO Share Option Scheme)
• Estimated Market Capitalization after IPO: HK\$15,333.6 million
• Minimum Board Lot: 20 Shares
• Nominal Value: RMB1.00 per H Share

Use of Proceeds: Growth-Driven Strategy and Investment Allocation

PATEO CONNECT plans to deploy net proceeds of approximately HK\$919.1 million toward aggressive growth initiatives:

• 30% (HK\$275.7 million): Expanding product portfolio and enhancing technology, focusing on software, hardware, and cloud-based vehicle connectivity.
• 30% (HK\$275.7 million): Upgrading production, testing, and validation capabilities.
• 20% (HK\$183.8 million): Expanding sales/services network and boosting brand awareness.
• 10% (HK\$91.9 million): Strategic acquisitions to integrate industry resources.
• 10% (HK\$91.9 million): Working capital and general corporate purposes.

This use of proceeds signals a growth-driven story with a strong emphasis on innovation, capacity expansion, and market leadership.[[35]]

Placement and Issuance Breakdown

• Public Float: 55,647,847 Shares, or approximately 37.10% of total issued shares post-IPO, will count toward public float.
• Cornerstone Investors: 4,557,520 H Shares allocated, representing 43.67% of the Offer Shares and 3.04% of total issued share capital (assuming Over-allotment Option not exercised).
• Employee Incentive Platforms: 15,350,000 H Shares reserved, not included in public float.

Investor Participation and Book Quality

Cornerstone Investors have committed HK\$465.9 million for 4,557,520 Offer Shares, with allocation making up a robust 43.67% of the Offer Shares. The commitment by high-profile anchors signals strong book quality and market confidence in the IPO.

• Cornerstone Investors: Names not explicitly listed, but agreements in place with strategic investors, contributing to solid initial support.
• No pre-listing disposals or sales by early shareholders disclosed.
• Book Quality Implication: The large anchor allocation and strategic nature of cornerstone investors imply strong first-day support and potential for robust initial trading performance, as inferred from committed figures and company statements [[445]].

Deal Parties and Structure

Leading global and regional investment banks are involved as joint sponsors, coordinators, bookrunners, and underwriters:

• Joint Sponsors/Overall Coordinators: China International Capital Corporation Hong Kong Securities Limited, Guotai Junan Securities (Hong Kong) Limited, CMB International Capital Limited, Huatai Financial Holdings (Hong Kong) Limited, CLSA Limited, BOCI Asia Limited, ABCI Securities Company Limited, Livermore Holdings Limited, Tiger Brokers (HK) Global Limited [[450]].
• Underwriting: Fully underwritten by Hong Kong and International Underwriters.
• Stabilization/Over-allotment: Over-allotment Option for up to 1,565,520 H Shares (15% of initial Offer Shares) is available to support market stability post-listing [[42]].
• Listing Day Support: The caliber and number of banks involved, coupled with a substantial greenshoe and cornerstone commitment, reinforce the likelihood of stable and successful listing-day performance (inferred from the syndicate structure) [[450]].

Company Overview: Smart Cockpit Solutions for Automotive Intelligence

PATEO CONNECT Technology specializes in smart cockpit solutions and vehicle connectivity support services, addressing the surging demand in automotive intelligence.

• Business Model: Offers integrated software, hardware, cloud-based connectivity, and value-added services for automakers.
• Key Products/Services: Smart cockpit systems, connectivity platforms, production validation, sales/service networks.
• Customer Segments: Major automotive OEMs, Tier 1 suppliers, and global expansion targets.
• Geographies: Primarily China, with deepening overseas expansion plans.

Industry Definition & Size: Automotive intelligence market, characterized by rapid innovation and competitive dynamics. The sector is described as highly competitive and rapidly evolving [[19]].

• Market Position/Advantages: Industry leadership, continuous innovation, international brand-building, comprehensive ecosystem cultivation, and operational efficiency are highlighted as core strengths.
• Brand Strength: Highly respected founder and experienced management team bolster reputation.

Financial Health: Revenue, Profitability, and Capital Position

Multi-period financial metrics:

Debt Levels: No material ongoing reliance on shareholder guarantees post-IPO; company expects operations to be financed by IPO proceeds, internal funds, and market borrowings [[324]].

Cash Flow & Liquidity: Management highlights sufficient cash and liquidity assets for operations and expansion, with robust trade receivable management [[429]].

Management Team and Governance

• Founder & Chairman: Mr. Ying Zhenkai (Chairman of the Board, Executive Director, and General Manager)
• Board: 14 Directors post-IPO (5 executive, 3 non-executive, 6 independent non-executive)
• Corporate Governance: Committed to Corporate Governance Code of Hong Kong Exchange [[324]].
• Industry Reputation: Founder and management team described as highly respected and experienced [[19]].

Sector Trends, Timing, and Market Environment

Automotive intelligence is rapidly expanding, driven by global demand for connectivity, smart cockpits, and digital transformation.

• Offer Period: Application commences 9:00 a.m., September 22, 2025; closes 12:00 noon, September 25, 2025.
• Listing Date: Expected after September 29, 2025 (allocation results announced no later than 11:00 p.m. September 29, 2025).
• Recent Developments: No material acquisitions, disposals, or mergers during track record period; ongoing expansion and A-share listing preparation (no PRC listing before/within 6 months after HK listing) [[138]].
• Sector Demand Drivers: Continuous innovation, integration of industrial resources, and operational efficiency cited as growth drivers.

Market conditions are described as favorable for the IPO, with strong anchor investor participation and robust underwriter syndicate support.[[138]]

Risk Factors

Investors should consider the following key risks:

• Intense Competition: Failure to compete effectively may impact financial condition and results [[19]].
• Revenue Growth Uncertainty: Past growth may not be indicative of future performance [[19]].
• Cash Flow & Receivables: Prolonged cash conversion cycle managed through enhanced collection and e-invoicing processes [[27], [429]].
• Legal & Regulatory: Subject to PRC laws regarding dividend distribution and reserve requirements; no assurance of recurring dividends [[33]].
• Shareholder Lock-up: 12-month lock-up for current shareholders (including Pre-IPO investors) post-listing [[139]].
• Pre-IPO Rights: All special rights of Pre-IPO investors (e.g., redemption, co-sale) terminated prior to listing application [[142]].
• Other Risks: Exposure to sector volatility, regulatory changes, customer concentration, and operational risks as outlined in the risk factors section [[47], [95], [96]].

Growth Strategy and Expansion Plans

PATEO CONNECT outlines a clear growth roadmap:

• Expand Market Share: Targeting leadership in smart cockpit and connectivity solutions.
• Continuous Innovation: Investment in R&D and new technologies to capture industry developments.
• International Expansion: Building a globally recognized brand and deepening overseas market presence.
• Industrial Ecosystem Integration: Strategic acquisitions and partnerships to cultivate a comprehensive industry ecosystem.
• Operational Efficiency: Process optimization and production management enhancements [[19]].

Capex Pipeline: Significant allocation for technology, production upgrades, and strategic acquisitions from IPO proceeds [[35]].

Ownership and Lock-ups

• Pre-IPO Shareholding: Founders, employee incentive platforms, Pre-IPO investors, and institutional investors.
• Post-IPO Structure: 149,991,249 shares outstanding, with cornerstone and public investors, employee incentives, and pre-IPO investors locked up for 12 months [[137], [139]].
• ESOP: Pre-IPO Share Option Scheme adopted August 4, 2025; 13,955,434 underlying Shares, max. 10% of total share capital. Options vest 6 months from grant, exercise price RMB1.00, exercise period up to 24 months from grant [[641], [642]].
• Dilution: Full exercise of options would dilute post-IPO shareholding by approx. 8.51% [[643]].

Valuation and Peer Comparison

PATEO CONNECT is valued at HK\$15,333.6 million post-offering, with unaudited pro forma net tangible assets per H Share at HK\$16.43. No direct peer valuation metrics are disclosed in the prospectus.

No sector performance or peer IPOs are disclosed for comparison.

Research and Analyst Coverage

No third-party analyst price targets or opinions are disclosed within the prospectus.

IPO Allotment Result and Subscription Outcomes

Allocation results will be announced on www.pateo.com.cn and www.hkexnews.hk no later than 11:00 p.m. September 29, 2025. Results are also available at www.iporesults.com.hk with “search by ID” functionality from September 29 to October 5, 2025. Telephone enquiry line available (+852 2862 8555). [[6], [482]]

Listing Outlook: Is PATEO CONNECT IPO Worth Subscribing?

Based solely on disclosed facts, PATEO CONNECT Technology (Shanghai) Corporation’s IPO offers investors:

• High-quality anchor participation and robust syndicate support, suggesting strong subscription demand and potential for stable first-day trading.
• Growth-driven use of proceeds and clear expansion strategy in a sector with long-term tailwinds.
• Healthy liquidity and working capital position, with manageable risks and competitive advantages.
• Lock-up structure and ESOP design align interests of employees and major shareholders post-listing.

Estimated first-day trading range is likely to be strong relative to the offer price, supported by cornerstone allocations, syndicate commitment, and sector momentum. The IPO appears worth subscribing for investors seeking exposure to automotive intelligence and smart cockpit technologies.

Where to Obtain the Prospectus

Prospectus available at: www.hkexnews.hk and www.pateo.com.cn

How to Apply for PATEO CONNECT IPO

• Application Channels: Online via White Form eIPO service (www.eipo.com.hk) and electronically through HKSCC EIPO channel via brokers/custodians who are HKSCC Participants.
• No physical application channels provided.
• Eligibility: Applicants must be 18 or older, have a Hong Kong address (for White Form eIPO), and be outside the United States under Regulation S.
• Application Dates: Opens 9:00 a.m., September 22, 2025; closes 12:00 noon, September 25, 2025.