Hong Kong Stock IPO: Feisu Chuangxin (03355.HK) IPO Strategy: The World's Second Largest DTC Network Leader + Winning Rate Prediction!!
$FS.COM(03355.HK)$NSING TECH(02701.HK) $DELTON(01989.HK)
Basic Information:
Subscription Period: March 13th - March 18th, results announced on the 19th, grey market trading on the 20th, listing on the 23rd;
Issue Price: 35.2-41.6
Minimum Subscription Fee: 4201.96
1 Board Lot: 100 shares
Global Offering: 40 million shares
Cornerstone Investors: Yes, 11 investors subscribed to 45.84% of the shares
Greenshoe: Yes, CICC as stabilizing agent
Sponsors: CICC, China Securities, China Merchants
Allocation Mechanism: Mechanism B, clawback 10%
Feisu Chuangxin focuses on the R&D, design, and sales of core equipment and general accessories in the network communication field. Through the online platform FS.com, it provides global enterprises with one-stop network solutions. Core products include optical modules and high-speed cables, fiber jumpers, network equipment, etc., with over 70,000 SKUs developed.
According to Frost & Sullivan, based on 2024 revenue, the company is the world's second-largest online DTC (Direct To Customer) network solution provider, with a market share of 6.9%.
To date, the company's self-operated platform has nearly 290,000 registered customers globally, covering nearly 200 countries and regions. Core customers include global renowned companies such as Qualcomm, Microsoft, Cisco, and Intel. The company has established warehousing and service centers in 7 countries worldwide, enabling rapid delivery.
Financial Performance:
Net profit for 2023, 2024, and the first three quarters of 2025 was RMB 457 million, RMB 397 million, and RMB 423 million respectively, with year-on-year changes of 25.31%, -13.02%, and 20.63%.
For the first three quarters of 2025, the company's operating revenue reached RMB 2.175 billion, total assets were RMB 3.722 billion, net cash flow from operating activities was RMB 543 million, and the ending balance of cash and cash equivalents was RMB 613 million, indicating sufficient liquidity.
Use of Proceeds:
Approximately 40% will be used to strengthen the digitalization and intelligence of the technology platform over the next five years (product development, underlying architecture, new protocols);
Approximately 30% will be used to enhance overseas market delivery (Singapore headquarters, warehouse upgrades, service network expansion);
Approximately 20% will be used for the digitalization of network solutions and service platforms;
Approximately 10% will be used for working capital and general corporate purposes.
Feisu Chuangxin's IPO has introduced 11 cornerstone investors, accounting for nearly 45.84%.
Feisu Chuangxin adopts Mechanism B with a 10% clawback;Global offering of 40 million shares, Hong Kong offering of 4 million shares, one board lot is 100 shares, totaling 40,000 board lots;Tail-end Group A subscription requires HK$420k principal, Head-end Group B subscription requires HK$840k principal;There is a funding conflict among the three IPOs of Guanghe Keji, Guomin Jishu, and Feisu Chuangxin,the current oversubscription multiple is 45x, and it is expected to reach around 1000x eventually;Sponsored by CICC, China Securities, and China Merchants, with cornerstone investors and a greenshoe. CITIC's historical sponsorship projects are good, while CICC and China Merchants' historical sponsorship projects are acceptable.
Feisu Chuangxin is the world's second-largest online DTC network solution provider, focusing on AI data centers, high-performance computing (HPC), and one-stop enterprise network solutions, right at the forefront of the AI computing power boom, AI concept, stable growth in market demand, and broad market prospects;
The company's fundamentals are solid, with significant improvement in profitability, and it is expected to meet the criteria for inclusion in the Stock Connect upon listing, with a strong lineup of cornerstone investors, ; however, it faces risks such as intense competition in the AI industry, rapid technological iteration, and supply chain/geopolitical factors; nevertheless, the certainty for Feisu Chuangxin is quite high.
There is a funding conflict among the three IPOs of Guanghe Keji, Guomin Jishu, and Feisu Chuangxin. Which one would you focus on applying for?
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