New listing at 361 degrees: 4 hours of wealth surges 3.8 billion

DING Wu, President and Executive Director of 361 Degrees

When Ding Wu, president and executive director of 361 Degrees, attended the listing ceremony at the Hong Kong Stock Exchange and spoke, investors did not mind his mandarin, but instead treated it as “more love” (361 degrees (speaking)—because the stock has gone up.

Yesterday, 361 degrees sporting goods company formally listed in Hong Kong, stock code 01361, listed on the first day rose more than 8%, the company's controlling family Ding family wealth surged 3.8 billion.

Retailers rush

Public Offer More Than 40 Times Subscription

361 degrees had announced a total of 500 million new shares on the Global Offering on June 17, after which it was determined that the initial public offering price in Hong Kong was 3.69 Hong Kong dollars per share. Among the 500 million shares, the international placement is 450 million shares, and the remaining 50 million shares are publicly issued in Hong Kong. The Offer Shares represent 25% of the company's enlarged share capital.

In fact, before 361 degrees did not introduce strategic investors, but did not expect that in the context of the current financial crisis on the global real economy is still continuing, many overseas investors are still optimistic about the Chinese sports sector - 361 degrees The IPO response was unprecedentedly enthusiastic. Global eight major long-term funds were fully subscribed and Merrill Lynch was the exclusive global coordinator, exclusive bookrunner and exclusive sponsor of the IPO. The portion for the issuance of investment institutions was approximately 10 times oversubscribed and the portion for retail investors was over-subscribed by over 40 times. The capital raised during the subscription period has exceeded HK$2 billion.

Wealth appreciation

4 hours soared 4.27 billion Hong Kong dollars

Yesterday, this 361 degree from Jinjiang did not disappoint investors.

At 10:00 am, the Hong Kong Stock Exchange opened at HK$4.13, which rallied to HK$4.28 and then fell. At 4 pm, it closed at HK$3.9, up 8.03% from the IPO price of 3.61 HKD, with 330 million shares transacted, involving HK$1.364 billion. .

The success of the company's listing, but also to 361 degrees shareholder wealth increased dramatically. In terms of yesterday's closing price, the Ding family’s wealth, which accounted for 54.75% of the shares of listed companies, increased by HK$4.27 billion, equivalent to approximately RMB3.8 billion.

In fact, the ownership structure of the 361-degree company is relatively simple. According to public information, 361 degrees was established by Ding Jiantong, a person from Jinjiang. After 2004, Ding Jiantong faded out the decision-making layer of the enterprise, and his sons Ding Wu and Ding Jiantong took over the company. Ding Wu is the president and executive director, and Ding Jiantong’s son is the chairman of the company. Before the listing, Ding Wu held 361 degrees 25% stake; "Ding's brothers" Ding Huirong and Ding brilliant each held 24% of the shares. After the listing, the Ding Family 3 people hold a total of 1.095 billion shares, accounting for 54.75% of the shares of listed companies.

Use of funds

Intend to enter the field of children's wear

According to reports, the company plans to use 39% of the funds raised to develop and increase brand awareness, investment in flagship stores in important markets, including sponsorship support for important sports marketing resources such as athletes, leagues, and sports teams; and 32% for increased production. Ability to improve plant conditions; 9% for R&D and development of children's shoes and children's clothing accessories; 6% for product testing and investment in new R&D laboratories; other funds will be used in the enterprise resource planning system and daily operations .

361 degrees public relations official told reporters that the company will increase the sales network in the first-tier cities in the Mainland, to consolidate the second-tier cities. He disclosed that the company plans to increase its sales network to over 6,900 in 2010 and plans to open 25 flagship stores.

The reporter was informed that the Menswear brand was also interested in going public in Hong Kong. Previously, ANTA Sports Products and Xtep Sports Products had been listed in Hong Kong. Minnan enterprises have set off a wave of listings in Hong Kong.