Brief News: CNGR priced at a low level, first listing closed down 5%
CNGR's stock price fell 5% on its first day of listing in Hong Kong, pricing at a low level. The company offered 104 million shares, raising a net amount of HKD 3.43 billion. Last year's revenue grew by 17.4%, but profits decreased by 24.7%. In the first half of this year, revenue increased by 6.1%, while profits fell by 14.8%. The funds raised will be used to expand production, research and develop new energy battery materials, and promote digitalization
The new energy materials manufacturer CNGR Advanced Material Co., Ltd. (2579.HK) opened flat at HKD 34 on Monday in Hong Kong, but the stock price later softened, closing at HKD 32.3 at noon, down 5%.
The company offered 104 million shares, with a price range of HKD 34 to HKD 37.8 per share, ultimately pricing at the lower end. The public offering was oversubscribed by 26.9 times, while the international placement was oversubscribed by 3.08 times, raising a net amount of HKD 3.43 billion.
Last year, the company's revenue grew by 17.4% to HKD 40.2 billion, but profits fell by 24.7% year-on-year to HKD 1.467 billion. For the interim results for the six months ending June this year, revenue increased by 6.1% year-on-year to HKD 21.32 billion, but profits dropped by 14.8% to HKD 753 million.
50% of the funds raised will be used to expand production and supply chain capabilities, about 40% will be allocated for research and development of new energy battery materials and advancing digitalization, and the remaining 10% will be used as general working capital
