[HK IPO] CAROTE, one of the world's fastest-growing kitchenware brands

CAROTE is a global kitchenware brand. Since the launch of the "CAROTE" brand in 2016, the company has established a significant presence in the online kitchenware segment in major markets such as China, the U.S., Western Europe, Southeast Asia, and Japan, becoming one of the fastest-growing kitchenware brands worldwide. The company's products emphasize "maximizing utility" and "offering great value," aiming to provide customers with practical, well-designed, and reasonably priced products to promote a modern cooking lifestyle.

  The company began its IPO on September 23, with an offer price range of HKD 5.72–5.78 to HKD 54.8 per share, 500 shares per lot, a minimum subscription of HKD 2,919.14, a market capitalization of HKD 3.063–3.095 billion, and an issuance of 130 million shares. It belongs to the furniture industry and has a greenshoe option.

    The sponsors are BNP Paribas Securities and CMB International. The sponsors' overall track record is poor, with BNP Paribas Securities not sponsoring any projects in the past two years, and CMB International's sponsored projects having a first-day gain rate of 25%.

    There are two cornerstone investors: MPC VII Pte. Ltd and YSC Go (BVI) Limited. Based on the median offer price, cornerstone investors account for 41.94% of the issuance, which is average.

    The online cookware market where the group operates is highly fragmented, with no dominant player. According to CIC data, the top five cookware brands in China accounted for less than 15.2% of the online retail market in 2023. The company ranked fourth in the Chinese market with a market share of about 1.2%.

    According to CIC data, the top five cookware brands in the U.S. accounted for about 42.1% of the online retail market in 2023. The company ranked second in the U.S. market with a market share of about 13.1%.

    The company's revenue from 2021 to 2023 was HKD 675 million, HKD 768 million, and HKD 1.583 billion, respectively, with a 106% year-on-year growth in 2023. Net profit for 2021–2023 was HKD 31.655 million, HKD 108 million, and HKD 236 million, respectively, with a 117.97% year-on-year growth in 2023. The company's performance is excellent, with rapid growth.

    Based on the median offer price, the market capitalization is HKD 3.079 billion, with an issuance of HKD 747.5 million, accounting for 24.28% of the total. With cornerstone investors locking up 41.94%, the remaining float is HKD 434 million, which is somewhat large.

   The current subscription multiple is 61.71x, indicating strong demand. With two days left in the subscription period, the final demand is expected to be even better.

Subscription Strategy:

    CAROTE is a global kitchenware brand with strong overseas sales and is already one of the fastest-growing brands in the industry. The sponsors' track record is weak, but there is a greenshoe option. There are two cornerstone investors, accounting for 41.94%, which is average. The company's performance is excellent, with rapid growth and net profit doubling annually. Based on the median offer price, the market capitalization is HKD 3.079 billion, with an issuance of HKD 747.5 million, accounting for 24.28%. With cornerstone investors locking up 41.94%, the remaining float is HKD 434 million, which is somewhat large. The current subscription demand is very strong. Such high-quality companies are rare in the Hong Kong market, so I plan to participate with margin financing!

My views are personal and do not constitute investment advice. The stock market is risky; invest with caution!

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$CAROTE(02549.HK)