Entertainment retailer YesAsia launches Hong Kong IPO

Over half of the proceeds from the global offering will be used for marketing.

Hong Kong-based entertainment retailer YesAsia is proposing a global offering of its shares in Hong Kong and listing on the Mainboard of The Stock Exchange of Hong Kong (SEHK), according to a press release.

YesAsia intends to offer 39.54 million new shares at an offer price range of $0.39 (HK$3) to $0.43 (HK$3.33) per share. About 35.59 million or 90% of the offer shares will be available for placing with institutional and professional investors, whilst about 3.95 million or 10% of the offer shares will be available for subscription by the public in Hong Kong.

UOB Kay Hian (Hong Kong) is the sole sponsor and the sole global coordinator of the global offering. Meanwhile, CS Logistics Holdings, and Triple Surge Holdings have agreed to subscribe for $3.86m (HK$30m) and $1.93 (HK$15m), respectively, as cornerstone investors.

The aggregate net proceeds to the company from the global offering will be about $12.05m (HK$93.5m). Of these, 54% will be used for ramping up marketing efforts for customer acquisition and retention.

At the same time, 20.1% of the proceeds will be used for enhancing platform content, IT capabilities and creating satisfactory user experience to promote benefits and uniqueness of Korean beauty and fashion products.

For the remaining proceeds, 16.1% will be for expanding logistics fulfillment capacity and enhancing warehouse efficiency, whilst 9.8% will be used as general working capital.

The Hong Kong public offering is expected to close on 2 July, and allotment results and the offer price are expected to be announced on 8 July. Dealings in the shares on the Mainboard of the SEHK are expected to begin under stock code 2209 on 9 July

YesAsia primarily sells products through its online platforms, complemented by a portion of sales of entertainment products through its offline B2B sales channel. It focuses on selling fashion & lifestyle and beauty products, as well as entertainment products.