Wondux, a Chinese environmental protection services provider backed by Shenzhen-based Fortune Venture Capital, has raised over 535 million yuan ($78 million) in an initial public offering (IPO) on the STAR Market on Tuesday.
The company offered 21.25 million shares at a price of 25.2 yuan ($3.65) apiece, collecting a total of 481 million yuan ($70 million) upon the deduction of stock issuance expenses.
Nanjing-based Wondux was the first company to float shares on the STAR Market in 2020. The Nasdaq-style sci-tech innovation board, which opened last July, saw 70 companies raising a combined 81.7 billion yuan ($11.84 billion) and accounting for 32 per cent of total funds raised in the A-share IPO market in 2019, according to KPMG’s IPO markets 2019 review report.
Its stellar IPO performance contributed to a record high fundraising amount of 251.9 billion yuan ($36.50 billion) in 2019 in the country’s A-share market since 2011. Deloitte China projected up to 150 companies to collect 160 billion yuan ($23 billion) on the STAR Market in 2020.
Wondux, founded in 2007 and formally known as Nanjing Wondux Environmental Protection Technology, offers waste reduction and management services like contamination remediation and wastewater treatment in China. The company applied to go public on the domestic bourse in April 2019, and it was approved by the stock exchange in late October 2019.
The firm registered over 577 million yuan ($84 million) in operating income in the first nine months of 2019, up 93.84 per cent compared to the same period in 2018. Its net profit attributable to shareholders stood at nearly 941 million yuan ($136 million) in the nine months, up 130.59 per cent year-on-year, according to the prospectus.