On October 16, CR Construction Group Holdings Limited ("CR Construction"; Stock Code: 1582. HK) was successfully listed on the Main Board of HKEx. First Capital Securities Limited ("FC Securities"), a subordinate company under First Capital Financial Group Limited ("FC Financial Group"), which is a wholly-owned subsidiary of China First Capital Group Limited ("CFCG" or "Group"; Stock Code: 1269.HK), acted as the joint bookrunner and joint lead manager. Ms. Li Minwen, Deputy Chief Executive Officer of CFCG, Chairman and Chief Executive Officer of FC Financial Group, attended the listing ceremony with Dr Ma Yi, the Managing Director of FC International Finance Limited as well as the investment banking team.
The stock price of CR Construction surged to HK$2.27 on the first day after listing, which was more than 1.2 times the issue price of HKD1. It closed at HK$1.8 at noon with a turnover of about HK$119 million. The public offering won a considerable over-subscription of approximately 8.87 times, with the net proceeds amounting to HK$96.3 million.
At the listing ceremony, Mr. Guan Manyu, the Chairman of the Board of Directors of CR Construction Group, stated in his speech that CR Construction Group was established in 1967 and has grown into one of the leading building contractors in Hong Kong with 50 years' experience in this industry. As a general contractor, CR Construction mainly undertakes the building construction projects and RMAA projects of public and private organizations. Since 2014, it has managed to merge with Zhejiang Construction Group and gained rapid development. Zhejiang Construction Investment Group acquired CR Construction and became its ultimate parent company while Zhejiang State-owned Capital has held 45.95% shares of the latter. The prospectus shows that Zhejiang State-owned Capital is a state-owned enterprise wholly owned by Zhejiang State-owned Assets Supervision and Administration Commission. According to the data on CIC (China Insights Consultancy), as of December 31, 2018, CR Construction Group was reckoned as the third largest contractor in Hong Kong which accounted for about 5.2% of the market shares among the entire contractors based on the revenue of building construction projects. The successful listing of CR Construction marked an important milestone achieved under the leadership of Zhejiang Construction Group. Looking into the future, CR Construction plans to expand the building construction projects and maintenance management business to increase its market share.
For CR Construction, the quality of projects is always the key to its success. Therefore, it has attached great importance to the establishment and maintenance of an effective and comprehensive quality management system. So far, it has completed multiple QMS certifications, including ISO 9001, ISO 14001 and OHSAS 18001 certified by Hong Kong Quality Assurance Agency and internationally recognized certification, ISO 50001. Additionally, it has also won a number of awards and recognitions, including Excellent Construction Award 2014 in building construction projects (renovation and revitalization projects) in Hong Kong; Excellent Construction Award 2014 in non-residential projects (new projects) in Hong Kong and Annual Construction Project Team Award 2017 granted by Royal Institution of Chartered Surveyors.
By virtue of a good reputation and solid position in the field of building construction engineering and RMAA engineering in Hong Kong, CR Construction has also strengthened its in-house safety management and quality assurance and established an occupational health and safety system to advocate safe working practices to all employees for the purpose of preventing accidents through security detections. In addition, an environmental management system has been set up to enhance the environmental awareness and prevent the environmental pollution caused by ongoing projects. Its safety and environmental management system has been proved conforming to the OHSAS 18001: 2007 and ISO 14001: 2004.
In the listed transaction of CR Construction, FC Securities played a role of joint bookrunner and joint lead manager in pushing forward the work of key investors in the listing and tapping the coherence points of investment from multiple perspectives, thereby laying a firm foundation for the successful listing. CR Construction witnessed another successful underwriting of the IPO for state-owned enterprises manipulated by FC Securities following Rizhao Port Jurong.
Ms. Li Minwen (the third at left), Deputy Chief Executive Officer of CFCG, Chairman and Chief Executive Officer of FC Financial Group was invited to the listing ceremony of CR Construction
After the completion of IPO projects of Ernest Bore, Rizhao Port Jurong and Scholar Education by FC Securities in the first half of 2019, FC International Finance under FC Financial Group launched another round of listing, acting as a joint sponsor for the listing application of Zhongcheng Energy. With the rich experience and sharp market insights, FC Financial Group is committed to providing a diversified international financial services platform for high-quality companies, including listing sponsorship and placing, dealing in securities, financing consultancy, merger and acquisition agency, financial advisory, asset management etc. to energetically promote the global development of Chinese and foreign companies.
Since 2016, FC Securities has undertaken 11 IPOs of educational enterprises and 15 non-educational projects, indicating its realization of diversified development across industries while drilling into the educational field. In 2018, FC Securities successfully participated in and witnessed the listing of 7 educational institutions and 5 non-educational companies in Hong Kong under the roles of joint global coordinator, joint bookrunner and joint lead manager for IPO projects, involving in multiple industries including real estate, semiconductor, clothing, mining and power, which has fully demonstrated its excellent underwriting ability and efficient execution competence and is well received by customers. FC Securities ranked 21st on Bloomberg’s list of securities dealers by IPO underwriting business in Hong Kong in 2018 in terms of the number of underwritten projects, and ranked 30th in terms of the amount of IPO proceeds raised.
In the future, FC Financial Group will also give full play to its unique advantages in Hong Kong, actively participate in capital issuing and assist more outstanding Chinese companies in gaining better development in Hong Kong through the help of high-quality investing groups at home and abroad as well as professional investment banking teams.