Transaction Overview
- CMGE is China's largest independent mobile game publisher with a mix of popular and premium games. Among the independent mobile game publishers in China, the mobile game developed by China Mobile Games ranked first in terms of cumulative revenue, with a market share of approximately 13.8%; the total number of games ranked first, with a share of approximately 9.3%; and the largest IP reserve, a total of 99 reserve IPs.
- CMGE is priced at HK$2.83 per share in the price range of HK$2.19–$2.83 per share, with total proceeds being US$191 million (assuming Over-Allotment Option fully exercised).
- The international tranche of this offering has been heavily over-subscribed, and the Hong Kong public offering is over 540 times oversubscribed. The investor's enthusiasm for subscription is very strong.
- CMB International has locked in the company's cornerstone order of HK$45 million for Henderson Land Chairman Dr. Peter Lee Ka-Kit.
- Other cornerstone investors in this issue include leading companies in the Internet industry, including China Literature, Weibo, Bilibili, Kuaishou, Ourpalm, and Sanqi Interactive. In addition, a number of internationally renowned institutional investors participated in the issuance as anchor investors, bringing strong confidence to the market.
- Furthermore, CMB International used its close relationship with investors in this issue to assist the company to introduce a number of international and Chinese long-term and hedge funds, which strongly supported the issuance.
- This deal cannot be closed without supports from various departments and local branch offices of the parent company CMB. The close cooperation among Corporate Finance Department, Equity Capital Markets Department, Equities Department, Research Department, Wealth Management Department and Legal & Compliance Department also helped a lot.
Offering Summary
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Issuer: |
CMGE Technology Group Limited |
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Listing Date: |
Oct 31th, 2019 |
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Offering Amount: |
US$191 million (with fully exercise of Over-allotment Option) |
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Indicative Price Range |
HK$2.19 – 2.83 per share |
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Offering Price: |
HK$2.83 per share |
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Offering Size: |
461,000,000 Shares (100% primary shares, representing 20.39% of enlarged share capital, before exercise of Over-allotment Option) |
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Stock Code: |
0302.HK |
About the Company
CMGE focuses on cooperating with owners of popular IPs relating to well-known cultural products and art works, and has a portfolio of successful non-IP based games. The Company supply players around the world with mobile games based on the IPs that it licenses and owns. CMGE develops mobile games based upon these IPs by cooperating with third-party game developers and through its own in-house development team and then publish these games on its extensive publishing network. The company also actively invests in IP owners and game developers to strengthen its mobile game ecosystem. CMGE plans to further enhance its operation of IP brands globally by developing pan-entertainment products based on its IPs that grow in popularity and eventually develops their own dedicated fan base and subculture.
Source: Prospectus, Public Announcement
