HKEX IPO Prospectus for Real Estate Trading Platform Anjuke is “Invalid”

anjuke
(Source: VCG)

This Friday, HKEX information showed that the IPO prospectus submitted by Anjuke had become invalid. At present, the relevant application materials are no longer supported for reading or downloading.

On April 7 this year, Anjuke submitted an application to list on the HKEX. According to the Listing Rules of HKEX, if the listing document submitted by the proposed issuer fails to pass the hearing of HKEX or is rejected within 6 months, the document will become invalid.

Anjuke was established in Shanghai in 2007, with its business covering new, second-hand and rental houses in addition tocommercial and overseas real estate, repairs and other associated property works.

The company was acquired by 58.com, a domestic information service website, for $267 million in March 2015. According to 58.com, the listing process of Anjuke is still progressing in an orderly manner, and the details are subject to the publicity on the website of the HKEX.

It’s shown in the prospectus that Anjuke recorded revenues of 6.216 billion yuan ($965 million), 7.579 billion yuan and 8.052 billion yuan respectively from 2018 to 2020. Among the the revenues, those of the company’s online marketing services was RMB 6.15 billion, RMB 7.3 billion and RMB 7.8 billion respectively, constituting more than 95% of total revenue.

At the same time, the sales and marketing expenses of Anjuke remain high, accounting for 42.7%, 39.2% and 44.6% of the total revenues from 2018 to 2020. The company’s net profit margin also declined year by year, registering RMB 1.907 billion, RMB 2.306 billion and RMB 1.955 billion over the past three years.

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It is expected in Anjuke’s prospectus that from 2021, the new house transaction service will become the main driving force for its overall growth, and the funds raised through its IPO will be used mainly for technical product development and expansion of the new house transaction service business, thus expanding the new house business to more cities in the next three years.