$UBTECH ROBOTICS 09880.HK$ is set to launch its initial public offering (IPO) from December 19th to December 22th, 2023. The company plans to globally offer 11,282,000 shares, including 1,128,200 shares for Hong Kong public offering and 10,153,800 shares for international offering. The offering price is expected to be between HK$86 and HK$116 per share, with a minimum trading unit of 50 shares. UBTECH ROBOTICS expects its H-shares to debut on the stock market on December 29th, 2023.

(Please note: Cash subscription deadline is 21/12(HKT) 10:00, Financing subscription deadline is 21/12(HKT) 10:00 on M+ Global.)

Offering Details

Offering Details
Number of Shares	11,282,000 Shares (subject to the Over-allotment Option)
Number of Hong Kong Offer Shares	1,128,200 Shares (subject to adjustment)
Number of International Offer Shares	10,153,800 Shares (subject to adjustment and the Over-allotment Option)
Min. Amount	HK$ 5,858.50 per lot
Offering Price Range	HK$ 86-HK$ 116 per share
Board Lot Size	50 shares
Offering Period	December 19th - December 22th, 2023
Listing Date	December 29th, 2023
Joint Lead Sponsor	GUOTAI JUNAN INTERNATIONAL

Company Profile:

$UBTECH ROBOTICS 09880.HK$ is an established robotic company based in the PRC, dedicated to the design, production, commercialization, sales and marketing and research development (R&D) of smart service robotic products and services (Note). Their offerings, ranging from consumer-level robots and appliances, enterprise-level smart service robotic products and services tailored for education, logistics and other sectors, are equipped to different extent with smart features that sense, interact, analyze and process human instructions and external environment such as mapping, temperature measurement and facial recognition. According to Frost & Sullivan, they are the No. 3 in the smart service robotic products and services industry in China (in terms of revenue) in 2022 with a market share of 2.8%, and China’s No. 1 provider of education smart robotic products and services (in terms of revenue) in 2022 with a market share of 22.5%.

Financial Information

CORNERSTONE INVESTOR

$UBTECH ROBOTICS 09880.HK$ have entered into a cornerstone investment agreement. Assuming an Offer Price of HK$101.0, being the mid-point of the indicative Offer Price range set out in this prospectus, the total number of Offer Shares to be subscribed by the Cornerstone Investor would be 5,394,550, representing (i) approximately 47.8% of the Offer Shares pursuant to the Global Offering and (ii) approximately 1.3% of the total issued share capital of our Company immediately upon completion of the Global Offering (assuming the Over-Allotment Option is not exercised). The cornerstone invertor is E-Town International Holding (Hong Kong) Co., Limited.

Use of Proceeds:

Assuming a sale price of HK$ 101 per share (the midpoint of the indicative price range of HKD 86 to HK$ 116 per share), the estimated net proceeds from the global offering are expected to be HK$ 1,028.9 million before the exercise of any over-allotment option.

As stated in the prospectus of the company, the group intends to use the net proceeds as follows:

• approximately 47.0% of the net proceeds (approximately HK$483.3 million), will be used to further advance our R&D capabilities to enhance our core technologies and smart service robotic products and services offerings;
• approximately 19.4% of the net proceeds (approximately HK$199.6 million), will be used for partial repayment of the following bank loans;
• approximately 7.9% of the net proceeds (approximately HK$81.7 million), will be used to upgrade our R&D laboratories in our Shenzhen R&D institute to enhance our R&D infrastructure to improve our R&D capabilities and efficiencies;
• approximately 9.5% of the net proceeds (approximately HK$97.6 million), will be used for the enhancement of our brand awareness and market penetration by expanding our overseas sales channels;
• approximately 6.2% of the net proceeds (approximately HK$63.7 million), will be used to partially fund the further optimization of our management and operational efficiency;
• approximately 10.0% of the net proceeds (approximately HK$102.9 million), will be used for working capital and other general corporate purposes.

Prospectus of $UBTECH ROBOTICS 09880.HK$ : https://www1.hkexnews.hk/listedco/listconews/sehk/2023/1219/2023121900021.pdf

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