Nobikkan (02635) Opens IPO Subscription from December 15 to 18, Expected Listing on December 23

Stock News12-15 06:50

Nobikkan (02635) has announced its initial public offering (IPO) subscription period from December 15 to December 18, 2025. The company plans to issue 3.7866 million shares globally, with 10% allocated to Hong Kong and 90% to international investors, along with a 15% over-allotment option. The price range is set at HKD 80–106 per share, with each board lot comprising 50 shares. Trading is expected to commence on the Hong Kong Stock Exchange on December 23, 2025.

Nobikkan specializes in developing and selling monitoring and inspection products, as well as urban governance solutions, primarily for railway operators and power grid companies in China. The company offers integrated AI-driven hardware and software solutions for monitoring, inspection, and maintenance applications. According to industry research, Nobikkan ranked as China's second-largest AI-powered power supply inspection and monitoring system provider in 2024, holding a 5.9% market share in the sector. The AI-powered inspection and monitoring solutions market accounted for approximately 2.2% of China's AI-powered railway solutions industry by revenue in 2024. Additionally, the company ranked third in China's railway industry for AI-powered inspection and monitoring solutions, with a 1.8% market share. The broader AI-powered railway inspection and monitoring solutions market represented about 11.6% of China's AI-powered railway solutions industry in 2024.

Controlling operational expenses to maximize efficiency is critical to the company's success. For the fiscal years ending December 31, 2022, 2023, and 2024, as well as the six months ending June 30, 2025, Nobikkan reported profits of RMB 63.2 million, RMB 88.6 million, RMB 115 million, and RMB 40.1 million, respectively. As the business expands, the company aims to optimize costs through economies of scale and improved cost efficiency, including streamlining workflows and leveraging technology to enhance productivity.

Assuming a mid-range offer price of HKD 93.0 per share and excluding underwriting fees and estimated expenses (without exercising the over-allotment option), Nobikkan expects net proceeds of approximately HKD 307 million from the global offering. The company plans to allocate these funds over the next three years as follows: 40% for core technology R&D to strengthen its product and service capabilities, 40% for constructing a new R&D center and headquarters, 10% for strategic investments and acquisitions to expand market reach, and 10% for working capital and general corporate purposes.

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