We are pleased to announce that on 19 January 2022, China Merchants Securities (HK) Co., Limited (“CMS (HK)”, a subsidiary of China Merchants Securities International Company Limited), acting as one of the Joint Sponsors, Overall Coordinators, Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers of YH Entertainment Group (“YH Entertainment” or “the Company”, stock code: 2306.HK), successfully assisted the Company to commence trading of its shares on the Main Board of The Stock Exchange of Hong Kong Limited (“HKEx”). A total of approximately 120 million shares are issued and offered under the Global Offering, at an offer price of HK$4.08 per share, raising a total of approximately HK$490 million (before the exercise of the over-allotment option) or HK$497 million (assuming the over-allotment option is fully exercised).
As a Joint Sponsor and Overall Coordinator of YH Entertainment’s IPO, CMS (HK) had made significant contributions in terms of execution and marketing. CMS (HK), overcoming all obstacles and challenges in the road to the Company’s initial public offering.
CMS (HK) had developed an effective marketing strategy for YH Entertainment’s IPO at early stages. CMS (HK) had assisted the preparation of the analyst presentation and marketing materials and coordinated the investor education and bookbuilding process. Despite a volatile capital market, CMS (HK), leveraging its excellent sales and distributional capabilities, successfully introduced Chinese Long-only funds, Chinese and overseas multi-strategy funds, strategic industrialist investors, and high-net-worth individuals to the Company. Furthermore, CMS (HK) facilitated Maoyan Entertainment’s cornerstone investment, successfully introduced renowned institutional investors, and maximized orders during management roadshow, laying a solid foundation for the Company’s successful listing in the HKEx.
YH Entertainment’s IPO received positive responses from the capital markets. Maoyan Entertainment, Sun Mass Energy (China Ruyi Holdings Limited’s wholly owned subsidiary), Mr. Ding Shijia (executive director and deputy chairman of ANTA Sports Products), and TradArt Investment SP participated as cornerstone investors, subscribing HK$155 million of the offered shares. Overall, the International Placing received 1.29 times subscription and the Hong Kong Public Offering received 28.68 times subscription.
About YH Entertainment
YH Entertainment is an established artist management company in China. According to Frost & Sullivan, the Company ranked first among artist management companies in China with a market share of 1.9% in terms of artist management revenue in 2021. Since its establishment in 2009, the Company has grown into a culture and entertainment platform comprising three complementary businesses of artist management, music IP production and operation, and pan-entertainment business. As a professional artist management company, the Company has accumulated extensive industry expertise, which has laid the foundation for the Company to lead China’s artist management market and embrace the opportunities.