EPIWORLD (02726) has initiated its public offering from March 20, 2026, to March 25, 2026. The company plans a global offering of 21.4921 million H-shares, with approximately 10% allocated for the Hong Kong public offering and around 90% for the international offering. The offer price is set at HKD 76.26 per share, with a board lot size of 50 H-shares. Trading of the H-shares on the Stock Exchange is expected to commence at 9:00 a.m. on Monday, March 30, 2026.
The group is a global leader in the silicon carbide (SiC) epitaxial wafers industry. According to a report by CIC, the group has been the world's largest supplier of SiC epitaxial wafers by annual sales volume since 2023, commanding a market share exceeding 30% in 2024. Its deep expertise in SiC epitaxial technology keeps it at the forefront of the industry, enabling the provision of high-quality and reliable products to customers. EPIWORLD was the first manufacturer globally to achieve mass external supply of 8-inch SiC epitaxial wafers and the first in China to achieve commercial batch supply for 3-inch, 4-inch, 6-inch, and 8-inch SiC epitaxial wafers. The group also led the drafting and establishment of the world's first and currently only SEMI industry standard for SiC epitaxial wafers.
In 2024, the group cumulatively sold over 164,000 SiC epitaxial wafers through wafer sales and foundry sales models. During the track record period, it delivered more than 599,700 SiC epitaxial wafers in total.
The group has entered into a cornerstone investment agreement with the Xiamen Advanced Manufacturing Industry Fund. Subject to certain conditions, the cornerstone investor has agreed to have its designated entity subscribe for a certain number of offer shares, rounded down to the nearest full board lot of 50 H-shares, amounting to a total investment of USD 99.10 million. Based on the offer price of HKD 76.26 per H-share, this translates to a subscription of 10.0585 million offer shares by the cornerstone investor.
After deducting underwriting commissions and estimated expenses related to the global offering, the group estimates net proceeds of approximately HKD 1.56 billion, based on the offer price of HKD 76.26 per share. Subject to adjustments based on evolving business needs and market conditions, the net proceeds are intended to be allocated as follows: approximately 71% will be used to expand SiC epitaxial wafer production capacity prudently over the next five years; about 19% will be allocated to research and development for SiC epitaxial wafers; and the remaining 10% will serve as working capital and for general corporate purposes.
During the track record period, the group's revenue for 2022, 2023, and 2024, as well as for the nine months ended September 30, 2024, and September 30, 2025, reached RMB 441 million, RMB 1.143 billion, RMB 974 million, RMB 808 million, and RMB 535 million, respectively. Gross profit for the same periods was RMB 197 million, RMB 445 million, RMB 332 million, RMB 286 million, and RMB 137 million, with gross profit margins of 44.7%, 39.0%, 34.1%, 35.3%, and 25.6%. Net profit was RMB 128 million, RMB 108 million, RMB 165 million, RMB 118 million, and RMB 21.1 million, while adjusted net profit (a non-IFRS measure) was RMB 172 million, RMB 384 million, RMB 324 million, RMB 263 million, and RMB 163 million for the respective periods.
Since 2024, the group's financial performance has been adversely affected by declining sales prices due to market competition and weakened demand resulting from a downturn in downstream customer markets.
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