Max Sight Announces GEM Board Listing Plan To Raise Up to HK$70 million
Offer Price Ranges between HK$0.30 and HK$0.35 Per Offer Share
A Leading Automatic ID Photo Booth Operator with Iconic Brand
Replicating the Success of its Business Model to the PRC Market
HONG KONG, CHINA - Media OutReach - 14 February 2018 - Max Sight Group Holdings Limited ("Max Sight" or "the Company", together with its subsidiaries "the Group"), a leading automatic ID photo booth operator with an iconic brand in Hong Kong and Guangdong Province, China, today announces details of its listing plan on the GEM of The Stock Exchange of Hong Kong Limited.
Max Sight plans to offer 200,000,000 shares (subject to offer size adjustment option), representing 25% of the enlarged issued share capital following completion of share offer (assuming the offer size adjustment option is not exercised). 90% of the shares will be offered by way of placing, and the remaining 10% will be offered for public subscription (subject to reallocation). The indicative offer price range is set between HK$0.30 and HK$0.35 per share. The shares will be traded in board lots of 8,000 each. Max Sight will raise up to HK$70 million. South China Capital Limited is the sole sponsor, while South China Securities Limited and Future Land Resources Securities Limited are the joint bookrunners and joint lead managers of the share offer.
The Hong Kong public offer will open at 9:00 a.m. on 15 February 2018 (Thursday) and close at 12:00 noon on 22 February 2018 (Thursday). The expected price determination date will be on 23 February 2018 (Friday), and dealing of the shares is expected to commence on 28 February 2018 (Wednesday) under the stock code 8483.
A Market Leader in Automatic ID Photo Booth Operation with an Iconic Brand
Max Sight is a leading player in the automatic photography industry in Hong Kong with over 27 years of operating history, with its footprints extended into Guangdong Province, China. The Group operates an iconic brand "Max Sight Photo 名仕快相" and "名仕富美" for automatic ID photos booths in Hong Kong and Guangdong Province, respectively. According to the Frost & Sullivan report ("F&S Report"), Max Sight was the only photo booth operator with a 100% share of the automatic ID photo service market in Hong Kong and also the largest photo booth operator with a 43.3% share of the total photo services market in terms of revenue in Hong Kong in 2016. In addition, it was the second largest player in the automatic ID photo service market of Guangdong Province in terms of the number of ID photo booths operated, with a market share of approximately 11.0% in 2016.
Mr. Jamson Chan, Chairman and Executive Director of Max Sight, said, "While we have established ourselves as a market leader in the automatic photography industry in Hong Kong, we have also been dedicated to seizing the tremendous potential in China's ID photo service market. With economic growth and increasing disposable income of residents in China, the demand for personal identification and travel documents and hence demand for ID photos kept increasing in recent years. Under the circumstances, Max Sight is well positioned to take advantage of our strengths to capture market opportunities, to expand the scale of our business, and increase our market share."
Extensive Network to Facilitate Accessibility
As the market leader in the ID photo service market, Max Sight has developed extensive service networks through the setting up of automatic ID photo service in extensive locations. Its photo booths are strategically located in prime locations of high footfall and/or where there may be ambient demand for digital ID photos which include ID documentations issuing authorities, railway and airport, various universities, hospitals, and shopping malls in Hong Kong and Guangdong Province. As at 5 February 2018, the Group owned an aggregate of 214 photo booths, of which 83 and 131 photo booths were installed and operated in Hong Kong and Guangdong Province, respectively.
Taking the Lead to introduce the Validation Technology
In 2010, the Group procured and operated the first batch of PRC validation photo booths in Guangdong Province which can validate photos for PRC ID card, PRC driving licence, PRC passport, etc. In 2012, the Group launched its photo booths with validation technology in Hong Kong to validate photos for Home Visit Permit and Exit-Entry Permit to Hong Kong and Macau.
With its proven track record of operating validation photo booths, the Group believes the photos it provides will continue to satisfy the specification requirements which may change from time to time, and the advantages of its automatic ID photo service equipped with advanced validation technology will capture expanding market share in the future. According to the F&S Report, currently there are no other ID photo booths or photography service providers in Hong Kong that provide photography services with technology similar to its validation technology.
According to the F&S Report, the revenue of automatic photo booth service in Hong Kong has enjoyed steady growth in 2016 with shares in ID photo service market of approximately 43.3% at HK$96.3 million. It is expected to take a share of approximately 44.0% in the Hong Kong ID photo service market in 2021. In China, the automatic photo booth business also showed a rapid growth with a CAGR of approximately 44.4% from 2012 to 2016, whilst the CAGR reached approximately 45.4% in Guangdong Province during the period. By 2021, it is forecasted that the market penetration of automatic photo booths in the ID photo service market in Guangdong Province in terms of revenue will reach approximately 14.5% such that the revenue of ID photo service market generated by the business of automatic photo booths is anticipated to increase from approximately RMB30.8 million in 2016 to RMB138.6 million in 2021 at a CAGR of approximately 35.1% from 2016 to 2021.
In view of that, Max Sight will strive to sustain its leading position in the automatic photography industry in Hong Kong, and further penetrate into the market of Guandong Province by implementing its farsighted business strategies.
Mr. Chan concluded, "Looking ahead, we will continue to replicate the success of our business model in Hong Kong to Guangdong Province by expanding our network of ID photo booths through installing new photo booths in prime locations and upgrading existing photo booths. In the meantime, it will be our priority to maintain our competitiveness in Hong Kong through continued market penetration, extending our reach to metro stations, and exploring new sites. Last but not least, we will further upgrade our validation centre and IT infrastructure to cope with our anticipated business growth."
Max Sight Group Holdings Limited
Offering Summary
Number of Offer Shares : 200,000,000 Shares (subject to the offer size adjustment option)
Number of Public Offer Shares : 20,000,000 Shares (subject to reallocation)
Number of Placing Shares : 180,000,000 Shares (subject to reallocation and the offer size adjustment option)
Indicative Offer Price Range : HK$0.30 - HK$0.35 per Offer Share
Board Lot Size : 8,000 Shares
Hong Kong Public Offer Period : 9:00 a.m., 15 February 2018 (Thursday) to 12:00 noon, 22 February 2018 (Thursday)
Expected Price Determination Date : 23 February 2018 (Friday)
Announcement of Allotment Results : 27 February 2018 (Tuesday)
Debut Trading of Shares : 28 February 2018 (Wedesday)
Stock Code : 8483
Use of Proceeds:
After deduction of underwriting fees and other expenses in relation to the Share Offer and assuming an offer price of HK$0.325 per share, being the mid-point of the indicative offer price range, the net proceeds of the Share Offer are estimated to be approximately HK$39.3 million upon the exercise of the offer size adjustment option in full.
The Company intends to use the net proceeds from the Share Offer for the following purposes:
|
Purpose |
Net Proceed (HK$ million) |
Percentage of Net Proceed |
|
34.4 2.0 2.9 |
87.5% 5.1% 7.4% |
Max Sight Group Holdings Limited
Business & Finance
15 Feb 2018