Dazhong Dental (02651) starts IPO today with an expected listing date of July 9th.

Public Oral (02651) plans to go public from June 30th to July 4th, 2025, intending to globally issue 10.8618 million shares of H shares, with 10% sold in Hong Kong and 90% sold internationally; the offering price will not exceed HK$21.4 per share, and is expected to be no less than HK$20.0 per share; H shares will be traded in board lots of 100 shares and is expected to start trading on the Stock Exchange of Hong Kong at 9:00 am on July 9, 2025 (Wednesday). The company is a privately-owned oral medical service provider in the central region with a focus on Hubei Province and Hunan Province, operating a continually expanding network of oral medical services in this growing market through a direct chain model. The company provides reliable and easily accessible oral care services to the community, aiming to serve the public. According to Frost & Sullivan data, based on income in 2024, the company ranks first among all private oral medical service providers in the central region, with a market share of approximately 2.4%. Over the years, the company has strategically focused on meeting the needs of the mass market and maintaining a strong presence in the densely populated central region. During the previous reporting period, the company's revenue came from providing comprehensive oral medical services, including (i) comprehensive dental diagnosis and treatment services, (ii) oral implant services, and (iii) orthodontic services. The company's revenue increased from RMB 409 million in the year ending December 31, 2022, to RMB 442 million in the year ending December 31, 2023. Challenges faced by the company from 2023 to 2024 were mainly due to a slower-than-expected economic recovery after the pandemic resulting in consumer downgrading, and intense competition among oral medical service providers. To address these macroeconomic pressures and consolidate the company's industry leadership, the company implemented centralized cost control measures, such as using online operating systems to visualize operational performance and optimize resource allocation for maximum cost efficiency, as well as negotiating with suppliers to obtain favorable prices for quality dental materials. The company's revenue sources remained stable, with only a slight decrease in total revenue from RMB 4.42 billion for the year ending December 31, 2023, to RMB 4.07 billion for the year ending December 31, 2024. Assuming the offering price is HK$20.7 per share (the median of the offering price range as described in this prospectus) and after deducting underwriting fees, commissions, and estimated expenses payable by the company for the global offering, and assuming the exercise of the over-allotment option, the company expects to receive net proceeds of approximately HK$186 million from the global offering. Approximately 35.0% of which will be used to establish new oral medical institutions in Wuhan and other cities in the central region; approximately 25.0% will be used for acquiring oral medical institutions; approximately 10.0% will be used for upgrading and renovating some of the company's existing oral medical institutions; approximately 10.0% will be used for optimizing the company's information technology infrastructure and systems; approximately 10.0% will be used for developing the company's medical professional team to further support the sustained growth of the oral medical service network; and approximately 10.0% will be used for operational funds and general corporate purposes. If the offering price is set at HK$21.4 per share and assuming the over-allotment option is not exercised, the company will receive additional net proceeds of approximately HK$7.3 million. If the offering price is set at HK$20.0 per share and assuming the over-allotment option is not exercised, the company's net proceeds will decrease by approximately HK$7.3 million. If the offering price is set higher or lower than the median of the estimated offering price range, the allocation of the above net proceeds will be adjusted accordingly. If the over-allotment option is exercised, the company plans to proportionally allocate the additional net proceeds for the above purposes.