Huaqin Co., Ltd. Announces Final Offer Price, Allotment Results, and Key Shareholder Information for Hong Kong IPO

Summary of the Global Offering

• Company: Huaqin Co., Ltd. (Stock Code: 3296, Stock Short Name: HUAQIN)
• Offer Price: HK\$77.70 per H Share
• Number of Offer Shares: 58,548,200 H Shares (subject to Over-allotment Option)
• Hong Kong Public Offering: 5,854,900 H Shares
• International Offering: 52,693,300 H Shares (subject to Over-allotment Option)
• Nominal Value: RMB1.00 per H Share
• Expected Listing Date: April 23, 2026
• Net Proceeds: Estimated at HK\$4,463.1 million after listing expenses
• Market Value of Public Float: Approximately HK\$4,549.2 million, exceeding HKEX minimum requirements

Key Points for Investors and Shareholders

1. Highly Oversubscribed IPO – Potential Volatility Ahead

The Hong Kong Public Offering was massively subscribed, with valid applications reaching 140,150 and a subscription level of 531.33 times. Only 42,660 applications were successful. This high concentration means that a small group of shareholders could significantly influence the share price, creating potential volatility. Shareholders and prospective investors are strongly advised to exercise extreme caution when dealing in the H Shares.

2. Allotment and Cornerstone Investors

• The International Offering had 171 placees and was 13.34 times subscribed.
• Key cornerstone investors include JPMAMAPL, UBS AM Singapore, Shanghai Gaoyi, Perseverance Asset Management, Taikang Life, and others, collectively holding nearly 50% of all H Shares after the offering. These allocations are subject to lock-up agreements until October 22, 2026, meaning they cannot dispose of their shares before this date.
• No single placee will be allocated more than 10% of the enlarged issued share capital, and there will be no new substantial shareholder as a result of this offering.

3. Shareholder Concentration and Potential Price Sensitivity

• The top 10 shareholders will collectively own over 74% of the company’s total issued share capital upon listing, with the top 25 shareholders holding nearly 79%.
• Such high concentration is price sensitive — any trading or movement by these large shareholders could significantly impact the stock price.

4. Stabilization Actions and Lock-up Arrangements

• China International Capital Corporation Hong Kong Securities Limited has been appointed as the Stabilizing Manager and may conduct price stabilization activities for up to 30 days after the close of the Hong Kong Public Offering. However, there is no obligation to do so, and after the stabilization period, prices could fall if demand weakens.
• The Controlling Shareholders Group (including Mr. Qiu Wensheng, Shanghai Aoqin, Shanghai Haixian, Qiu Wenhui, and Fujian Yuexiang) will be subject to lock-up undertakings, restricting disposals until October 22, 2026 (first six months) and further restrictions until April 22, 2027 (second six months).

5. Regulatory Compliance and Special Consents

• The company has obtained waivers and consents to allocate shares to certain existing minority shareholders and cornerstone investors, as well as placees connected to the underwriters, subject to strict compliance with Hong Kong Listing Rules.
• Various cross-border OTC swap arrangements and total return swaps are in place, with legal title to some shares held by financial intermediaries for hedging purposes. These intermediaries will not exercise voting rights during the swap period.

6. Public Float and Free Float Requirements

• The public float (free tradable shares) and free float after listing will meet HKEX requirements, with at least 10% of H shares and a market value well above HK\$3 billion available to the public. There will be at least 300 H shareholders at listing.

7. Allotment Basis under Hong Kong Public Offering

The allotment was highly competitive, with the smallest applicants (100 shares) having a 12% chance of full allocation and the probability dropping significantly as application size increased. The largest applications (in Pool B) received about 0.05% in allotment.

8. Dealings Commencement

• H Share certificates become valid at 8:00 a.m. on April 23, 2026, and shares will be traded in board lots of 100.
• The stock code for Huaqin Co., Ltd. will be 3296.
• Investors trading based on allocation details prior to receipt of share certificates do so at their own risk.

Shareholder Actions and Risks

• Monitor announcements closely for any exercise of the Over-allotment Option, stabilization actions, or early termination of the Hong Kong Underwriting Agreement. These events may move the share price significantly.
• The lock-up expiry dates for cornerstone and controlling shareholders should be watched closely, as potential sales at expiry could result in increased share supply and possible price declines.
• The highly concentrated shareholding structure means the stock could be subject to sharp price movements, both up and down, based on relatively small trades or changes in sentiment among major holders.
• Investors should be aware of the involvement of financial intermediaries in holding legal title to certain shares for swap and hedging arrangements, as this may affect voting outcomes and liquidity.

Conclusion

Huaqin Co., Ltd.’s IPO has attracted strong institutional and retail interest, leading to high oversubscription and a concentrated shareholding structure. While this underscores market confidence, it also introduces potential price volatility and sensitivity to major shareholder actions. All investors and shareholders should remain vigilant for regulatory updates, stabilization actions, and any significant trades or movements among cornerstone and controlling shareholders, which could materially affect the stock’s performance post-listing.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Investors should consult the official prospectus and seek professional advice before making any investment decisions. The author and publisher accept no responsibility for any loss arising from reliance on the information contained herein.

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