Star Sports Medicine Co., Ltd. Completes Highly Subscribed Global Offering: Key Details for Investors

Summary of the Global Offering

Star Sports Medicine Co., Ltd., a leading sports medicine company incorporated in the PRC, has successfully completed its Global Offering and is set to list its H Shares on the Hong Kong Stock Exchange (stock code: 1609) on May 5, 2026. The offer price is fixed at HK\$98.50 per H Share, and the Company will issue a total of 8,421,850 H Shares, representing approximately 15.36% of its enlarged share capital upon listing. The total number of issued shares upon listing will be 54,831,344.

Key Points of the Offering

• Total Offer Shares: 8,421,850 H Shares
• Hong Kong Public Offer Shares: 842,200 H Shares (10%)
• International Offer Shares: 7,579,650 H Shares (90%)
• Offer Price: HK\$98.50 per H Share (plus brokerage, SFC transaction levy, HKEX trading fee, and AFRC levy)
• Gross Proceeds: HK\$829.6 million
• Net Proceeds (after estimated listing expenses): HK\$758.4 million

Subscription and Allotment Results

• Hong Kong Public Offering: Oversubscribed by 7,823 times with 300,735 valid applications but only 16,844 successful applicants.
• International Offering: Subscribed 10.41 times, allocated to 71 placees.
• Cornerstone Investors: Major allocations went to JSC International Investment Fund SPC (Shenghai SP), OAP IV (HK) Limited, and Greater Bay Area Development Fund Management Limited. Notably, OAP IV is an existing shareholder and was granted a waiver to maintain its pre-IPO shareholding ratio.

Shareholding and Lock-up Arrangements – Price Sensitive Information

• High Concentration of Shareholding:
  The top 5 placees in the International Offering hold over 52% of the Offer Shares, and the top 10 control more than 71%. The top 25 placees collectively hold over 89% of Offer Shares. This high concentration could lead to significant share price volatility if any major placee trades their shares.
• Lock-up Periods:
  • Controlling Shareholders (including Chairman Dong Wenxing and related partnerships) are locked up for 12 months post-listing, until May 4, 2027, covering 35.1% of shares.
  • Pre-IPO Investors, holding 49.5% of shares, are also subject to a 12-month lock-up.
  • Cornerstone investors have a 6-month lock-up until November 4, 2026.
• Public Float and Free Float:
  • Immediately after listing, at least 52.12% of shares will be in public hands, and at least 10% of H Shares will be freely tradable, meeting all HKEX requirements.
  • No single placee will hold more than 10% of the total share capital post-listing, and there will be at least 300 shareholders at listing.

Waivers, Special Consents, and Price Sensitive Structures

• Waivers for Existing Shareholder Participation:
  • OAP IV (HK) Limited, an existing shareholder, was granted a waiver to subscribe as a cornerstone investor in the International Offering to maintain its pre-IPO shareholding (“OAP IV Anti-Dilution Right”). This is fully disclosed and does not affect the public float or result in any preferential treatment.
• Placings to Connected Clients and Close Associates:
  • Some Offer Shares have been allocated to connected clients of distributors (e.g., China AMC, China Galaxy, Orient Securities, etc.) under strict regulatory consents, with most held on a discretionary basis for independent third parties.
  • Some shares are held via total return swap structures, meaning the economic exposure (profit/loss) is passed to underlying investors, but legal title and voting rights remain with the intermediary, who will not exercise voting rights during the swap period.

Important Risks and Price-Sensitive Factors for Shareholders

• Potential Volatility: Due to the high concentration of shares among a small number of shareholders, even modest trading volumes could result in significant share price movements.
• Lock-up Expiries: When the lock-up periods end (notably for Pre-IPO investors and controlling shareholders in May 2027, and cornerstone investors in November 2026), there could be significant selling pressure, potentially impacting the share price.
• Complex Ownership and Shareholder Structures: Multiple waivers and participation by connected parties, including total return swap arrangements, may add layers of complexity and could impact market perception and liquidity dynamics.
• Regulatory Stability: The listing process complies with all HKEX rules, with explicit waivers and consents where required, ensuring regulatory stability at listing but also highlighting the need for ongoing compliance monitoring.

Trading Arrangements

• Dealings in H Shares will commence at 9:00 a.m. on May 5, 2026, in board lots of 50 H Shares each.
• H Share certificates become valid at 8:00 a.m. the same day, assuming all listing conditions are met and no termination event occurs.
• Stock code for the H Shares is 1609.

Conclusion

The Star Sports Medicine Co., Ltd. listing represents a significant event for both the company and investors. The extremely high subscription rates, strong cornerstone participation, and high shareholding concentration are all factors that could lead to short-term volatility and long-term price sensitivity, especially when lock-up periods expire. Investors should monitor future announcements closely and be aware of the risks associated with concentrated ownership and impending lock-up expiries.

Disclaimer: This article is for informational purposes only and does not constitute an offer or invitation to buy or sell securities. Potential investors should read the official prospectus and consult professional advisors before making any investment decisions. The information provided is based on the official allotment announcement and related documents as of May 4, 2026, and is subject to change without further notice.

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