Core Viewpoint - Marco Polo Holdings Co., Ltd. has received approval for its initial public offering (IPO) of RMB ordinary shares (A-shares) and plans to list on the Shenzhen Stock Exchange, with a total issuance of 119.492 million shares, accounting for 10% of the post-issue total share capital [1][2]. Summary by Sections IPO Details - The IPO price is set at RMB 13.75 per share, corresponding to a diluted static price-to-earnings (P/E) ratio of 14.27 times based on the lower of the 2024 net profit attributable to shareholders after deducting non-recurring gains and losses [2][11]. - The issuance will consist entirely of new shares, with no existing shareholders transferring shares [1][2]. Pricing and Valuation - The IPO price is significantly lower than the average static P/E ratio of 32.20 times for the industry and 27.69 times for comparable listed companies [2][11]. - The pricing is determined based on various factors, including market conditions, comparable company valuations, and the company's fundraising needs [22]. Strategic Placement and Subscription - The issuance will involve a combination of strategic placement, offline inquiry, and online subscription methods [3][5]. - The strategic placement will account for 10% of the total issuance, with specific allocations for management and core employees [6][7]. Company Strengths - Marco Polo has established a strong brand presence in the non-metallic mineral products industry, with its brands recognized as leaders in the market [12]. - The company has a robust distribution network with over 8,276 sales terminals across all provincial and municipal cities in China, enhancing its market reach [13]. - The company is recognized for its green manufacturing practices, with several production facilities awarded national "green factory" status [14]. - Marco Polo's technological capabilities are advanced, with numerous patents and a commitment to research and development [15][16]. - The company offers a diverse range of products, making it one of the largest manufacturers in the building ceramics sector [17][18]. Financial Aspects - The expected total fundraising from the IPO is approximately RMB 1.643 billion, which is below the previously stated fundraising requirement of RMB 2.376 billion [21][23]. - The net proceeds after deducting issuance costs are projected to be around RMB 1.56 billion [23]. Investor Considerations - Investors are advised to carefully assess the pricing rationality and potential risks associated with the investment, as the stock price may fluctuate post-listing [2][11][22].