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Rabu, 01 Januari 2020 06:44:00

Activation Group Announces Proposed Listing on the Main Board of The Stock Exchange of Hong Kong to Raise up to HK$538.2 million

Indicative Offer Price Range of HK$1.71 to HK$2.34 Per Share

HONG KONG, - 31 December 2019 - A leading and fast growing integrated marketing solutions provider, Activation Group Holdings Limited ("Activation Group" or the "Company", which together with its subsidiaries, is referred to as the "Group", stock code: 09919) announced on 30 December 2019 the details of the global offering (the "Global Offering") and the proposed listing of its shares (the "Shares") on the Main Board of The Stock Exchange of Hong Kong Limited (the "HKSE").]

The Global Offering of a total of 200,000,000 Shares (the "Offer Shares") is comprised of 180,000,000 Shares for an international placing (the "International Placing") and of 20,000,000 Shares for a Hong Kong public offering (the "Hong Kong Public Offering"), which respectively represent 90% and 10% of the total number of the Offer Shares.

The offer price (the "Offer Price") is in the range of HK$1.71 to HK$2.34 per share. The over-allotment option allows the issue of up to 30,000,000 additional shares, or equivalent to 15% of the Offer Shares.
 
The net proceeds from the Global Offering are estimated to be approximately HK$355.1 million after deducting the underwriting commissions and other estimated expenses in connection with the Global Offering, assuming an Offer Price of HK$2.025 per Offer Share being the mid-point of the indicative offer price range, and assuming that the Over-allotment Option is not exercised. The Group intends to use the net proceeds for the following purposes:
 
Approximately 55.9%, or HK$198.5 million is expected to be used to develop and expand the Group's existing business of integrated marketing solutions and intellectual property ("IP") development;
Approximately 34.2%, or HK$121.6 million is expected to be used as cash reserve for strategic investment funds for seeking suitable cooperation or investment opportunities which are of strategic benefit to the Group; and
Approximately 9.9%, or HK$35.0 million will be used for general replenishment of working capital and other general corporate purposes.
 
Activation Group is a leading and fast-growing integrated marketing solutions provider that provides experiential marketing, digital marketing and brand promotion. It also provides public relations services in Greater China through its operations in Shanghai and Beijing.

According to a report by China Insights Industry Consultancy Limited, which is an independent market research and consulting company, Activation Group ranked first in experiential marketing services for premium and luxury brands in Greater China in 2018 with an approximately 6.3% share of the market.

The Group's international clientele includes Louis Vuitton, Chanel, Tiffany & CO. and Mercedes-Benz. The Group also taps into the market for sports and entertainment IP development.

The Group has been operating its business of IP development, mainly for the sports sector, in 2016, when it entered into IP cooperation agreements with Amaury Sport Organization (A.S.O.) and LaLiga and was granted exclusive rights to organise authorised events and other rights for marketing, sponsorship, merchandising and other uses in China. In 2017, the Group and jointly established Stufish Asia to begin the business of entertainment IP development.  
 
As Greater China's leading experiential marketing services provider for international premium and luxury brands, Activation offers a comprehensive range of marketing solutions to its clients, including creative design services for event concept, event planning and management, event venue set-up and event execution.

The Group formulates marketing solutions based on its clients' requirements and works with them to implement tailored design and execute the plans for the events. The Group also directly engages various suppliers as required for the event and ensure that the event is well set up to fit its clients' needs while ensuring compliance with applicable laws and regulations. (*).