Well Chip Group's upcoming pawnshop IPO
Well Chip Group Berhad (Chinese name: Dayuan's pawn shop) will soon be listed on the Malaysian main board. The company focuses on the pawnshop business. Currently, it has 23 pawnshops and 4 gold and jewelry stores in Johor State, and sells through websites and e-commerce platforms. The company's main sources of revenue include pawnshop interest and jewellery and gold transactions.
IPO details
Underwriter: Kenanga Investment Bank
Co-contractor: CGS International (formerly CIMB Investment Bank)
Application date: June 26
Deadline: July 10th
Draw date: July 12
Listing date: July 23
Listing Price: RM1.15
Total Market Capitalization: 690M
Underwriter: Kenanga Investment Bank
Co-contractor: CGS International (formerly CIMB Investment Bank)
Application date: June 26
Deadline: July 10th
Draw date: July 12
Listing date: July 23
Listing Price: RM1.15
Total Market Capitalization: 690M
Business Overview
Well Chip's core business includes pawnshop services and gold and jewellery 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 apps enable traditional pawnshop businesses to thrive in the digital age.
Well Chip's core business includes pawnshop services and gold and jewellery 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 apps enable traditional pawnshop businesses to thrive in the digital age.
Financial status
The company has gradually expanded over the past four years, from 14 pawnshops to 22, and the loan amount increased from 500M to close to 1 billion. Revenue mainly comes from gold and jewellery sales, accounting for 2/3 of total revenue. The pawnshop business's total revenue increased from 120M to 200M in the past four years, but profit margins declined, from 27% in 2020 to 17% in 2023.
The company has gradually expanded over the past four years, from 14 pawnshops to 22, and the loan amount increased from 500M to close to 1 billion. Revenue mainly comes from gold and jewellery sales, accounting for 2/3 of total revenue. The pawnshop business's total revenue increased from 120M to 200M in the past four years, but profit margins declined, from 27% in 2020 to 17% in 2023.
Risks and opportunities
Although Well Chip's business prospects are promising, it should be noted that the pawnshop business is risky and requires significant cash flow and insurance support. After the company's listing, the company will expand its business through the capital raised to support daily operations in Melaka and 2 in Johor.
Although Well Chip's business prospects are promising, it should be noted that the pawnshop business is risky and requires significant cash flow and insurance support. After the company's listing, the company will expand its business through the capital raised to support daily operations in Melaka and 2 in Johor.
In addition to that, you can also apply for their IPO on the moomoo platform
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myeyok1962 : Waiting
KeepRelaxToTrend : It is directly in JB, it passes through many rooms at once
MilkMaster OP KeepRelaxToTrend : Haha have you checked it out?
KeepRelaxToTrend MilkMaster OP : No need to check it out; there are just a few in my neighborhood![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")