Changjiu Holdings Limited listed on the HKEX with Patrons as Joint Bookrunners and Joint Lead Managers

On 9 January, WellCell Holdings Co., Limited (“WellCell Holdings Co., Limited"), stock code (06959.HK), was officially listed on the Main Board of the Hong Kong Stock Exchange, with Patrons as Joint Bookrunner and Joint Lead Manager. Patrons was informed that the final offer price of Changjiu Holdings was HK$5.95, which was oversubscribed by approximately 10.67 times. The company previously launched a global public offering of 50.54 million shares from 29 December 2023 to 4 January 2024, 10% of which were offered in Hong Kong in board lots of 500 shares at an admission fee of HK$3,989.84, raising a maximum of nearly HK$400 million.

It is learnt that Changjiu Holdings plans to use the proceeds of the fund raising in the following areas: to improve the monitoring services for pledged vehicles, to develop an integrated support system to facilitate the development of the automobile distribution sector, and to enhance the operation and management capabilities of automobile dealers. In addition, a portion of the proceeds will be used to expand sales and marketing capabilities.

According to China Insights Consultancy, the market size of Changjiu Holdings is expected to reach RMB 89.6 million in 2027. Patrons expects to see increasing support for new energy vehicles and smart cars as the government introduces favorable policies, such as the reduction of vehicle purchase tax for some passenger cars. Meanwhile, consumer demand for automobiles continues to grow, which will stimulate the huge potential of China's automobile market and drive market growth. As a result, the market size of the automobile dealership operation management services provided by Changjiu Holdings will continue to expand, consolidating its dominant position and differentiating itself from the competition.

As Joint Bookrunners and Joint Lead Managers of the IPO project, Patrons will leverage its strengths and resources from multiple sources to actively promote the listing of Changjiu Holdings. The listing in Hong Kong also provides Changjiu Holdings with a broader development platform and more capital and resource support for the company's future expansion and development. Changjiu Holdings will be able to further strengthen its competitive edge in the automotive market, expand its market share and achieve better performance growth.