Wenye Group Launches HKEX Global Offering

Duff & Phelps congratulates Wenye Group Holdings, Ltd. (1802.HK) (“Wenye Group” or the “Group”) on its global offering on the Hong Kong Stock Exchange on January 14, 2020. 

Established in 1989, Wenye Group is a Shenzhen-based holding company which subsidiaries deliver building decoration services for major Chinese construction projects. A 2018 Frost & Sullivan Report ranked the Group 28th in the PRC’s building decoration market, with a market share of approximately 0.03% in terms of revenue. 

From 2016 to 2019, the Group engaged in over 2,214 projects with a recognized revenue of CNY 4.62 billion. Its most recent high-profile projects include Wuhan Tianhe’s and Qingdao’s airports; the Guangxi Finance hotel building; the Shenzhen International Conference Centre; and building decorations works for the headquarters of a multinational company at Shanghai International Trade City. 

Some 148,500,000 shares are expected to be issued through the global offering (subject to the exercise of the over-allotment option); the offer price is expected to fall between HKD 1.06 and HKD 1.37 per offer share. Net proceeds of approximately HKD 131.1 million are expected to be raised from the global offering. 

In the near term, the Group intends to use the proceeds to invest in sustainable growth, strengthen its position in the PRC building decoration industry and increase shareholder value. 

Duff & Phelps was engaged as a professional independent valuer for the Wenye Group Holdings, Ltd. global offering.