LEMO SERVICES (02539), a shared massage equipment provider, opened its IPO subscription from November 25 to 28 noon, offering 5.5556 million shares globally at a price range of HKD 27 to HKD 40 per share. Market data shows that as of 10:00 AM on Friday (28th), the company secured approximately HKD 131.4 billion in margin financing from brokers. Based on a public offering size of HKD 22.22 million, the subscription was oversubscribed by about 5,912.8 times.
Each lot of LEMO SERVICES consists of 100 shares, with an entry fee of HKD 4,040.4 per lot. The company is expected to list on December 3, with China Securities (International) and Shenwan Hongyuan (HK) acting as joint sponsors. LEMO SERVICES has not implemented a clawback mechanism, allocating 10% of shares to the public offering, with the overall coordinator able to reallocate up to 15%. The company did not introduce cornerstone investors.
According to its prospectus, LEMO SERVICES provides massage services through its machines installed in high-traffic public locations across China. Data from Frost & Sullivan shows that from 2022 to 2024, the company ranked first in transaction value among all machine-based massage service providers in China, with market shares of 33.9%, 37.3%, and 42.9% respectively. In terms of revenue, LEMO SERVICES also led China's machine massage market in 2024, capturing over 50% market share.
Launched in 2016 under the brand "LEMO Bar," the company focuses on providing machine-based massage services in commercial complexes, cinemas, and transportation hubs (including airports and high-speed rail stations). As of November 15, 2025, LEMO SERVICES had established over 48,000 service points with more than 533,000 massage machines, covering 31 provincial-level regions and 337 cities in China.
The number of service points expanded from 21,727 as of December 31, 2022, to 45,993 by December 31, 2024, achieving a compound annual growth rate (CAGR) of approximately 45.49%. In terms of consumer reach, the company has a strong market presence, with cumulative identifiable service users exceeding 174 million and registered members surpassing 40 million as of November 15, 2025.
Financially, for the fiscal years 2022, 2023, and 2024, as well as the eight months ended August 31, 2025, LEMO SERVICES reported revenues of approximately RMB 330 million, RMB 587 million, RMB 798 million, and RMB 631 million, respectively. Net profits and total comprehensive income for the same periods were RMB 6.481 million, RMB 87.34 million, RMB 85.807 million, and RMB 88.55 million, respectively.
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