Tongcheng New Materials Starts HK IPO: Minimum Subscription HK$4,444, Listing on Sept 29
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Tongcheng New Materials (09607.HK), a Chinese semiconductor photoresist producer, has launched its global offering from September 21 to 24, with an expected listing on September 29. The company plans to offer approximately 68.1187 million shares globally. According to a Frost & Sullivan report, for fiscal year 2025, the company ranked first in sales revenue in both the global and Chinese markets for phenolic resin rubber additives used in tires, with market shares of 41.4% and 45.9%, respectively. For fiscal years 2023, 2024, and 2025, revenues were approximately RMB 2,937.3 million, RMB 3,263.4 million, and RMB 3,420.6 million, with profits of RMB 404.1 million, RMB 534.2 million, and RMB 577.3 million, respectively. Net proceeds from the global offering are expected to be approximately HKD 2.706 billion (assuming the over-allotment option is not exercised, based on the midpoint price of HKD 41.5). The company intends to allocate 32.8% of proceeds to enhance R&D, 21.0% to upgrade production facilities, 20.0% for strategic investments/acquisitions, and 10.0% to repay bank loans.
Source report
Tongcheng New Materials (09607.HK) has announced that its public offering will run from September 21 to September 24. The company plans to offer approximately 68.1187 million shares globally, with an expected listing date of September 29.
Company Overview
Positioned in the midstream segment of the industrial chain, the company serves sectors including tires, automotive semiconductors, panel photoresists, rubber additives, and other chemical products.
According to a Frost & Sullivan report, for the fiscal year 2025, the company ranked first in sales revenue in both the global and Chinese markets for phenolic resin rubber additives used in tires, with market shares of 41.4% and 45.9%, respectively.
Financial Overview
The company reported the following revenues and profits for the periods indicated:
| Period | Revenue (RMB) | Profit (RMB) | |--------|---------------|--------------| | FY2023 | 2,937.3 million | 404.1 million | | FY2024 | 3,263.4 million | 534.2 million | | FY2025 | 3,420.6 million | 577.3 million | | H1 2025 | 1,650.5 million | 358.3 million | | H1 2026 | 2,133.1 million | 389.1 million |
Use of Proceeds
Tongcheng New Materials expects net proceeds from the global offering to be approximately HKD 2.706 billion (assuming the over-allotment option is not exercised, calculated based on the midpoint of the price range at HKD 41.5).
According to the prospectus, the company intends to allocate the funds as follows:
- Approximately 32.8% — to enhance research and development efficiency and capabilities
- Approximately 21.0% — to upgrade and maintain production facilities, improving capacity and product competitiveness
- Approximately 20.0% — for strategic investments and/or acquisitions to support long-term growth strategy
- Approximately 10.0% — to repay bank loans
(Source: HAFU Securities)
Source
东方财富网-港股导读Eastern
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Tongcheng New Materials launches HK IPO, targets up to HK$2.706 billion in net proceeds