Known as the second Mingyuan Cloud (HK:00909) in Hong Kong stocks, Xinnuo Technology received over 400 times subscription, but it broke on the first day of IPO.
On January 6, SaaS and software solution provider Xinnuo Technology (HK:09600) was listed on the Hong Kong Stock Exchange with an issue price of HK$4.36 and a net fund-raising of HK$772 million. On the first day of the IPO, Xinnuo Technology opened with a break of HK$4.12, a 5.5% drop from the issue price.
Then, the stock price of New York Technology rose slightly, rising to the highest intraday to 4.52 Hong Kong dollars. As of press time, Xinnuo Technology reported 4.35 Hong Kong dollars, lower than the issue price of 4.36 Hong Kong dollars, a relative drop of 0.23%, with an amplitude of 9.17%, and a total market value of approximately 3.48 billion Hong Kong dollars.
According to the subscription results previously announced by Xinnuo Technology, its price is 4.36 Hong Kong dollars, 800 shares per lot, 3488 Hong Kong dollars per lot, and a lot rate of 16%. Data shows that a total of 337,000 people participated in the subscription, the subscription multiple was 446.57 times, and the frozen funds were 39.333 billion Hong Kong dollars.
It is understood that Xinnuo Technology has introduced two cornerstone investors for listing in Hong Kong, namely Hony Capital and Caitong Fund. Among them, Hony Capital subscribed for 48.5 million yuan through Jinyong Capital, the main body it wants to visit, and 30 million yuan for Caitong Fund.
In 2017, 2018, 2019, and the first half of 2020, Xinnuo Technology’s revenues were 21.66 million yuan, 121 million yuan, 149 million yuan and 58.755 million yuan; net profits were 1.539 million yuan, 31.123 million yuan and 331.3 million yuan respectively. Ten thousand yuan and 3.054 million yuan.
According to the prospectus, Xinnuo Technology’s revenue comes from the provision of software development services, technical and maintenance services and software sales for financial institutions, medical institutions and other enterprises. During the reporting period, the business contribution of financial institutions accounted for 98.1%, 91.0%, 85.2% and 90.3% respectively.
Even so, the market share of New Zealand Technology is not high. According to the data, the total market share of IT solution providers for the top five financial institutions in China is 17.3%, while Xinnuo Technology has only 0.13% of the market, ranking only in the top 100.
At the same time, the R&D revenue of New New Technology is also very few. In 2017, 2018, and 2019, its R&D expenditures were 3.2 million yuan, 10.5 million yuan, and 14.3 million yuan respectively, accounting for 15.2%, 8.7%, and 9.6% of revenue respectively; this investment in the first half of 2020 was 3.5 million yuan, accounting for 5.9%.
Before the IPO, Zhai Shuchun, the chairman, CEO, executive director, and chairman of the board of New New Technology, held 54.6% of the company through Nebula SC, Yuan Yukai held 36.4% through Earnest Kai, Bai Hong held 5% through Silver Cooperation, and Wang Weibin held shares. 2%, Huang Shumin holds 1% and Bao Hongtao holds 1%.
After the IPO, Zhai Shuchun held 40.95%, Yuan Yukai held 27.3%, Bai Hong held 3.75%, Wang Weibin held 1.5%, and Huang Shumin and Bao Hongtao held 0.75% respectively. Among them, only Zhai Shuchun is a senior executive of New New Technology, and Bai Hong and others are third parties.