Core Viewpoint - The company Leshu Comfort (02698.HK) has successfully listed on the Hong Kong Stock Exchange, becoming the first African consumer goods manufacturer to do so and the first Middle Eastern headquartered company on the exchange [1]. Company Overview - Leshu Comfort was founded by a couple in their 70s, Shen Yanchang and Yang Yanjuan, and has been operating in the African hygiene products market for 15 years since its inception from the Sen Da Group [7]. - The company ranks first in the African market for baby diapers and sanitary napkins, with market shares of 20.3% and 15.6% respectively, according to a report by Frost & Sullivan [7]. Financial Performance - From 2022 to 2024, the company's revenue is projected to grow from $320 million to $454 million, while net profit is expected to increase from $18.4 million to $95.1 million, representing a profit growth of over four times [7]. - The company has demonstrated strong operating cash flow, indicating robust financial health [7]. Market Potential - The African market presents significant growth potential, with over 50% of the population under 20 years old and the highest global growth rate for newborns. However, the penetration rate for baby diapers is only 20%, compared to 70%-86% in Europe and China [7]. - The company has established eight factories and 51 production lines in Africa, covering over 80% of the local population through a localized production and deep distribution channel strategy [7]. IPO Details - The IPO was highly sought after, with a global offering of 90.884 million shares, and the public offering was oversubscribed by 1,813.77 times, marking the highest subscription rate for Hong Kong consumer stocks in the past five years [5]. - The company secured 15 well-known institutional investors, raising approximately $139 million (about HKD 1.08 billion) in the offering, reflecting strong institutional confidence in its investment value [5]. Use of Proceeds - The net proceeds from the IPO are approximately HKD 22.29 billion, with over 70% allocated for capacity expansion and production line upgrades, including new production lines in Ghana and Senegal [7]. - The company plans to add an annual production capacity of 6.278 billion baby diapers and 3.407 billion sanitary napkins [7].