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Global Offering of 125,000,000 Shares
At an Offer Price Between HK$2.96 and HK$3.59 Per Share
Raises up to Approximately HK$448.8 Million |
HONG KONG, Dec 5, 2013 - (ACN Newswire) - econtext Asia Limited ("econtext Asia" or "the Company"), a leading provider of online payment services and e-commerce solutions in Japan, today announced the details of its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited ("SEHK").
 | | econtext Asia Limited Announces Proposed Listing on the Main Board of SEHK |
Offering Details
econtext Asia intends to offer 125,000,000 Shares at an Offer Price ranging between HK$2.96 and HK$3.59 per Share. Of the total, 90% or 112,500,000 Shares are initially for International Placing and 10% or 12,500,000 Shares are for its Hong Kong Public Offering. Assuming the Over-allotment Option is not exercised, the total issue size is estimated at between approximately HK$370.0 million and HK$448.8 million.
econtext Asia has secured three pre-IPO investors, Sumitomo Mitsui Card, Credit Saison and JCB, each of which is a major credit card merchant acquirer in Japan. They would be holding an aggregate of approximately 14.6% of the issued share capital of the Company upon completion of the Global Offering, assuming there is no exercise of the Over-allotment Option.
The Hong Kong Public Offering will begin at 9 a.m. on 6 December, 2013 (Friday) and close at 12:00 noon on 11 December, 2013 (Wednesday). The final Offer Price and allocation results will be announced on 18 December, 2013 (Wednesday). Dealing in the Shares of the Company is expected to commence on the Main Board of SEHK on 19 December 2013 (Thursday) under the stock code 1390. The Shares will be traded in board lots of 1,000 Shares.
Daiwa Capital Markets Hong Kong Limited is the Sole Global Coordinator, Sole Bookrunner, Sole Lead Manager and Sole Sponsor.
Trusted and well recognized brand names in Japan that offer an integrated e-commerce experience and cost effectiveness
econtext Asia Limited is a leading provider of online payment services and e-commerce solutions in Japan. It provides online payment services through its subsidiaries ECONTEXT and VeriTrans. ECONTEXT has been recognized in the industry as one of the first online payment service providers in Japan with the capability of processing payments made at convenience stores throughout Japan and acting as a convenience store interface serving four of Japan's top 10 convenience store chains. VeriTrans has traditionally been recognized in the industry as an innovative online payment service provider in Japan and has strong relationships with credit card merchant acquirers. The Company also offers value-added services including settlement transaction-linked advertisement service and recommendation engine, bringing merchants a more integrated e-commerce experience, thereby strengthening customer loyalty and providing greater cost effectiveness.
Strong and established relationships with payment networks creating broad range of payment options
The Company operates one of the largest online payment systems in Japan, which was connected to 376 banks, 39 credit card merchant acquirers, three electronic money (eMoney) networks and the networks of eight convenience store chains throughout Japan as of June 30, 2013. The Company's agency payment services allow online merchants to accept payments via credit card, debit card, ATM or internet banking transfers, eMoney, domestic or international payment intermediaries (such as PayPal or Alipay), payments made at convenience stores and through mobile phone carriers such as au, Softbank and docomo.
econtext Asia was the first online payment services company in Japan to launch services with China UnionPay and PayPal payment options. The Company has also entered into business and capital alliances with certain credit card merchant acquirers in Japan, such as Sumitomo Mitsui Card, Credit Saison and JCB. These strategic relationships will help the Company to maintain their market position in the industry and maximize synergies for promoting and developing its business in Japan and elsewhere.
Recurring and scalable revenue business model based on a large, stable and diversified customer base
The Company's revenue is principally derived from monthly service fees and per transaction fees in connection with the online payment services. The existing broad and diversified customer base consisting of merchants in various industries provides the Company with a stable source of recurring revenues. For the year ended 30 June 2013, the Company processed approximately 123 million transactions with an aggregate value of approximately HK$48.3 billion. As of 30 June 2013, the Company had 12,284 Active Merchant Websites, where the top five customers in aggregate accounted for less than 30% of the revenue for each of the three years ended 30 June 2011, 2012 and 2013.
Well positioned to seize market potentials, especially in Asia from the fast growing e-commerce market
Driven by various positive macro industry trends, the Japanese online payment services market is forecasted to grow at a CAGR of 13.0% from 2012 to reach revenue of JPY222 billion in 2017, while the volume of online payment transactions globally is forecasted to reach 31.4 billion transactions in 2013 at a CAGR of 20.0% from 2009 to 2013. The Company began international expansion in 2009, and subsequently invested in two joint ventures, in Indonesia in 2011 and Shanghai in 2013. In order to access overseas markets, especially the PRC, in a more efficient manner, the Company established the headquarters in Hong Kong in 2012.
Growth strategies steered by experienced management team and supported by controlling shareholder
The Company's management team combines extensive experience in the e-commerce, Internet, and information technology industries, with a proven track record of operating and managing online payment and e-commerce systems successfully.
Digital Garage, a technology and marketing company listed in Japan, is the Company's controlling shareholder. econtext Asia has an IP licensing arrangement with Digital Garage, Inc. which the Company believes will allow it to take advantage of the brand recognition of Digital Garage, Inc. among potential investors and business partners for overseas expansion and potential future business alliances.
Looking ahead, in order to enhance the position as a leading provider of online payment services and e-commerce solutions, the Company plans to increase market share in Japan by targeting small to medium enterprises, optimize the fee structure by forming strategic alliances with credit card merchant acquirers and offering value-added services, as well as introduce offline payment processing services to broaden the scope of business. Also, the Company will expand the business through selective acquisitions, investments, licensing arrangements or partnerships, and capitalize on high growth opportunities and expand the operations throughout Asia.
Financial Highlights
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Year ended 30 June 2011-2013 CAGR
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2011 2012 2013
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HK$ million
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Revenue 278.7 492.4 1,166.5 104.6%
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Gross Profit 82.8 139.5 313.2 94.5%
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Profit for 24.5 42.5 63.4 61.0%
the Year
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Offering Details
Number of Offer Shares under the Global Offering
-- 125,000,000 Shares (subject to the Over-allotment Option)
Number of Hong Kong Offer Shares
-- 12,500,000 Shares (subject to reallocation)
Number of International Placing Shares
-- 112,500,000 Shares (subject to reallocation and the Over-allotment Option)
Offer Price -- HK$2.96 to HK$3.59 per Share
Expected Market Capitalization
-- Approximately HK$1,480 million to HK$1,795 million
Stock Code -- 1390
Use of Net Proceeds
Assuming that the Offer Price is HK$3.28 per Share (being the mid-point of the stated range of the Offer Price), the net proceeds of the Global Offering are estimated to be approximately HK$346.0 million, before exercise of the Over-allotment Option, after deducting related expenses, and is intended to be applied for the following purposes:
Expand international operations in emerging e-commerce markets in Asia - 50%
Expand operations in Japan by acquiring and investing in e-commerce or online payment services companies with good earning and growth potential - 15%
Expand offline payment service business in Japan and Asia - 12%
Sustain development and improvement of technologies used in the payment services in Japan - 10%
Fund working capital and other general corporate activities - 10%
Carry out additional marketing and promotional activities to attract more small-to-medium enterprise merchants in Japan - 3%
Contact:
Strategic Financial Relations Limited
Vicky Lee +852 2864 4834 vicky.lee@sprg.com.hk
Ming Chan +852 2864 4892 ming.chan@sprg.com.hk
Gladys Kong +852 2864 4806 gladys.kong@sprg.com.hk
Fax: +852 2527 1196
Website: www.sprg.com.hk
Topic: Press release summary
Source: econtext Asia Limited
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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