Well Chip Group's upcoming listing on the pawn IPO market.

Well Chip Group Berhad (Chinese name: Dayuan's pawnshop) is about to be listed on the Malaysia Main Board. The company specializes in pawnshop business and currently has 23 pawnshops and 4 gold jewelry stores in Johor State, which are sold through websites and e-commerce platforms. The company's main sources of revenue include pawnshop interest and jewelry gold transactions.

IPO Details
Underwriter: Kenanga Investment Bank
Joint Contractor: CGS International (formerly CIMB Investment Bank)
Application Date: June 26th
Deadline: July 10th
Drawing Date: July 12th
Listing Date: July 23rd.
Listing Price: RM1.15.
Total Market Value: 690M.

Business Overview
Well Chip's core businesses include pawnbroker services and gold jewelry trading. The company has 23 pawnshops in Johor and plans to open more stores in Johor and Melaka. The company's e-commerce platform and mobile application have enabled traditional pawnshop businesses to thrive in the digital age.

Financial condition
The company has gradually expanded over the past four years, from 14 pawnshops to 22, with loan amounts increasing from 500M to nearly 1 billion. The majority of the revenue comes from gold jewelry sales, accounting for 2/3 of the total revenue. Pawnbroker business revenue has increased from 120M to 200M over the past four years, but the profit margin has decreased from 27% in 2020 to 17% in 2023.

Risks and opportunities
Although the business prospects of Well Chip are bullish, it is important to note that the pawn business carries certain risks and requires a large amount of cash flow and insurance support. After the company goes public, it will use the funds raised to expand its business, with 5 branches in Johor and 2 branches in Melaka to support daily operations.

In addition, IPOs can also be applied for on the moomoo platform.