Shenzhen Woer Heat-Shrinkable Material Co., Ltd. (WOER) (09981) has opened its initial public offering subscription period from February 5, 2026, to February 10, 2026. The company plans a global offering of approximately 140 million H shares, with 10% allocated for the Hong Kong public offering (subject to reallocation) and 90% for the international offering (subject to reallocation). The offer price is set at HK$20.09 per share, with a board lot size of 200 shares. Trading of the shares on the Stock Exchange is expected to commence on February 13, 2026.
The company's principal business operations encompass: (i) Electronic and Communication Business, involving the development, manufacturing, and sales of (a) communication cable products, including high-speed copper cables, consumer, and industrial wires and cables; and (b) electronic materials; (ii) Power Transmission Business, involving the development, manufacturing, and sales of (a) new energy vehicle power transmission products, including NEV charging products and power battery safety protection products; and (b) cable accessories; and (iii) Other Businesses, primarily consisting of wind power generation operations. Notably, during the track record period, sales of the company's heat-shrinkable materials constituted the vast majority of its electronic materials revenue.
According to data from Frost & Sullivan, the company ranked fifth among global communication cable manufacturers based on 2024 worldwide revenue, capturing a 12.7% share of the global market. It held the top position in the global heat-shrinkable materials industry, accounting for 20.6% of the global market share by 2024 revenue. In the global new energy vehicle power transmission products industry, the company ranked ninth with a 1.9% market share based on 2024 revenue. It also ranked seventh in the global cable accessories industry, holding a 2.5% market share by 2024 revenue. The company attributes these accomplishments to its sustained investment in product innovation, holding 547 invention patents as of September 30, 2025.
Benefiting from its widely recognized product quality and leading market position, the company achieved robust growth during the track record period. Based on financial reports prepared under International Financial Reporting Standards, the company's revenue increased from RMB 5.337 billion in 2022 to RMB 5.719 billion in 2023, and further to RMB 6.920 billion in 2024. Its net profit rose from RMB 660 million in 2022 to RMB 758 million in 2023, and reached RMB 921 million in 2024. For the nine months ended September 30, 2025, the company's revenue and net profit were RMB 6.077 billion and RMB 883 million, respectively.
The company has entered into cornerstone investment agreements with HHLRA, Shanghai Greenwoods, Huatai Capital Investment (related to Greenwoods' OTC swap), Jump Trading, Huizhou Huilian, Jiangxi Copper, Guotai Junan Securities Investment (Hong Kong) Limited (related to Jiangxi Copper's OTC swap), Shenzhen New World, Gaoshi, Wusong, SCV Alpha, Yield Royal, Guohui Hong Kong, Puxin Guotai Junan Securities Investment (Hong Kong) Limited (related to Puxin's OTC swap), Capchem Hong Kong, Everbright Yi Asset Management, Factorial, and Qianhai Morningstar. Under these agreements, the cornerstone investors have agreed, subject to certain conditions, to subscribe, or procure their designated entities to subscribe, for a total of approximately $124 million (or HK$969 million, based on an exchange rate of HK$7.79735 to US$1.00) worth of offer shares (rounded down to the nearest full board lot of 200 H shares).
Assuming an offer price of HK$20.09 per share (the highest amount in the price range indicated in the prospectus), and after deducting underwriting fees, commissions, and estimated expenses payable by the company for the global offering, the estimated net proceeds are approximately HK$2.734 billion. Aligned with its strategic plan, the company intends to allocate the net proceeds as follows: 45% will be used to diversify the product portfolio and upgrade products to expand the business scope, increase market share and penetration, thereby consolidating its leading position in the electronic communication and power transmission industries.
A further 27% of the proceeds are earmarked for expanding the global business footprint and enhancing production capacity in China and Malaysia to meet the growing demand from rapidly expanding overseas markets. Another 18% is designated for potential strategic investments and/or acquisitions; specifically, the company plans to seek suitable opportunities to expand R&D capabilities and expertise, strengthen its position in the value chain through resource integration, ensure supply chain stability, and better meet the needs of downstream application scenarios.
The remaining 10% of the net proceeds will be allocated for working capital and general corporate purposes.
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