Chemical product manufacturer BEFAR GROUP (6745.HK; 601678.SH) was listed on the Hong Kong Stock Exchange on Friday, opening down 21.26% and reporting HKD 3.05 at noon, a drop of 12.36%.

BEFAR Group's global offering consists of 352 million H shares, with the offering price set at HKD 3.48 per share, raising a net amount of approximately HKD 1.16 billion (USD 148 million). The Hong Kong public offering recorded a subscription rate of 226.58 times; the international offering also recorded a subscription rate of 3.26 times. Seven cornerstone investors were introduced, including China Hongqiao, Tiantu Capital, Hyperion Venture, Shengwei, as well as Beijing Yian, Luhua Daosheng, and Aurora SF.

Founded in 1968, BEFAR Group primarily engages in the production and sales of chlor-alkali chemicals, C3 and C4 chemicals, and wet electronic chemicals, with core products including caustic soda, propylene oxide, MTBE, and electronic-grade hydrofluoric acid. BEFAR Group expects its net profit attributable to the parent company for the first half of this year to be RMB 344 million, a year-on-year increase of 208.25%. The growth is mainly attributed to a low base in the same period last year, the phased price increase of key products such as propylene oxide, MTBE, and propylene, as well as increased sales following the commissioning of the C3 and C4 projects.

The company stated that approximately 40% of the raised funds will be used for the construction of the Yuanwang He Storage Project in the Beihai Economic Development Zone of Binzhou, about 30% will be used to enhance research and development capabilities, about 10% will be used for the construction of electronic chemical production facilities, about 10% will be used to expand overseas sales and service networks, and the remaining approximately 10% will be used for general working capital and maintaining operational flexibility.

Li Shida

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