WellCell Holdings Listing on HKEX with Patrons as Joint Lead Managers

On 12th January, WellCell Holdings Co., Limited (“WellCell Holdings"), stock code (02477.HK), was officially listed on the Main Board of the Hong Kong Stock Exchange, with Patrons as the Joint Lead Manager. The final price was HK$1 per share, and the IPO was 28.64 times oversubscribed. WellCell Holding was previously listed between 28 December 2023 and 9 January 2024, with a global offering of approximately 125 million shares, raising a maximum of approximately HK$125 million.

It is learnt that WellCell Holdings will plan to use the proceeds from the fundraising to fund the following: 28% to meet the initial funding requirements of future ICT integration projects to support the commencement of the projects; 25.7% to commence new research and development projects to drive innovation and development; 14.7% to strengthen the project management team to cope with the anticipated expansion plans and business growth; 4% for sales and marketing efforts, including expanding manpower and resources and launching marketing campaigns; and 4% for sales and marketing activities, including expanding manpower and resources and launching marketing campaigns. 4% for sales and marketing efforts, including expansion of manpower and marketing activities; 17.6% for repayment of part of the bank borrowings; and 10% for general working capital support and operational needs. The proper allocation of these funds will help drive the Company's development and business growth.

According to the offering prospectus, WellCell Holdings offers three core businesses: the development of telecoms network performance analysis software, the provision of telecoms network support services (infrastructure maintenance and engineering services) and information and communications technology (ICT) integration services. Among these services, wireless telecommunication network optimization services accounted for a larger portion of the revenue. the total revenue of the third-party ICT integration services industry in the PRC has increased from RMB 116.7 billion to RMB 168.7 billion from 2018 to 2022, representing an overlay annual growth rate of 9.7%. The total revenue of the third-party ICT integration services industry in the PRC has increased from RMB 160.7 billion to RMB168.7 billion from 2020 to 2022, representing an overlay annual growth rate of 9.7%.

In terms of business performances, for the first half of 2020, 2021, 2022 and 2023, WellCell Holdings's operating revenues was RMB196 million, RMB203 million, RMB227 million and RMB114 million, respectively, with a net profit of RMB29.660 million, RMB25.524 million, RMB24.259 million and RMB14.658 million, respectively.