October 12, 2023,October Inada Group Co., Ltd. Shiyue Daotian Group Co., Ltd. (abbreviation”October rice paddies”) (09676.HK) was successfully listed on the main board of the Hong Kong Stock Exchange.
October rice paddiesFrom Shenyang, Liaoning, as one of the leading and rapidly growing kitchen staple food companies in China, the company is committed to providing customers with pre-packaged high-quality rice, grains, beans and dried goods products. The company has successfully built three major brands: October Rice Field, Firewood Garden, and Fuxiang Renjia, and has a strong omni-channel brand influence. According to Frost & Sullivan,October rice paddiesIt is the company with the highest revenue for pre-packaged rice retail products and pre-packaged grains, beans and seeds in China in 2022. It is also the company with the fastest compound annual revenue growth rate in 2020-2022 among the top five kitchen staple food revenue in China. Based on 2022 online channel sales revenue,October rice paddiesIt is the largest company in the rice, grains, beans and seeds market in China, with a market share of 10.7%. According to Frost & Sullivan, in terms of revenue in 2022, October rice fields ranked fourth among modern supermarket channels in China's rice, grains, beans and seeds markets.
October rice paddiesThis is the IPO global sale53.4075 million H shares(No over-allotment rights). The issue price was HK$15.36 per share, and the total capital raised was approximately HK$820 million.
October rice paddiesThe IPO introduced a wholly-owned subsidiary of Liaoning Pengrun Urban Construction Group controlled by the Xinmin Municipal Finance BureauXinmin TianshiThe shares offered were subscribed for RMB 96.41 million (approximately HK$105 million). The shares subscribed by Cornerstone Investors accounted for about 12.42% of the number of shares offered globally and 0.62% of the shares issued after the sale was completed.
According to the prospectus,October rice paddiesIn the shareholder structure after listing,Mr. Wang Bing, directly holding 20.57% of the shares;Mr. Wang Bing and Ms. Zhao WenjunThrough October Zhongxin, holding 9.79% of the shares; October Jin Feng, held by Mr. Wang Bing and Ms. Zhao Wenjun, acted as a general partner to control the management of the October rice field enterprise and held 36.14% of the shares; Mr. Wang Bing and Ms. Zhao were able to exercise a total of 66.50% of the voting rights through direct and indirect methods.
October rice field enterprise managementIn October, Jin Feng, Shu Minghe (Mr. Wang's nephew), Zhao Shujuan (Ms. Zhao's sister), Zhao Wenchen (Ms. Zhao's younger brother), and Zhao Shulan (Ms. Zhao's sister) held 0.04%, 43.68%, 16.02%, 16.02%, and 24.26% of the shares respectively
Zhao Shulan, who directly holds 1.21% of the shares; Kai Cheng Capital, through Generation Sigma HK, holds 11.86% of the shares; Yunfeng Fund holds 3.23% of the shares through YF Mega Media (HK); Sequoia Capital holds 2.69% of the shares through Sequoia Capital China Growth; Sequoia Hanchen holds 2.69% of the shares; Mr. Li Ruigang holds 1.72% of the shares through CMC October; Guo Ruyi and Hu Wenqin, hold 0.43% of the shares through Ceran Investment; PJSC, a Mubadala Investment Company under the Abu Dhabi Government, holds 4.66% of its shares through MIC.Other public shareholders hold 5.00% of the shares.
The main intermediary teams for the October Inada (09676.HK) IPO listing include:
Morgan Stanley, CICC, and CITIC Construction Investment International are their co-sponsors, overall coordinators, joint global coordinators, joint bookrunners, and joint lead managers;
Tiger Securities is its joint lead manager;
KPMG is its auditor;
Commerce and Gao Weishen are their corporate Chinese lawyers and corporate Hong Kong lawyers respectively;
Jingtian Gongcheng and Pu Heng are Chinese lawyers for their brokerage firm and Hong Kong lawyers respectively;
Frost & Sullivan is his industry advisor.
Link to the October Inada Holdings prospectus:
