IPO Prospectus on the Austalian Securities Exchange Is Now Open to Investors
Sydney, Aug 26, 2013 AEST (ABN Newswire) - 99wuxian is to raise $20 million at 40c per CHESS Depositary Interest (CDI), the security used by the ASX to allow international companies to trade on the local market. It is equivalent to 40c a share and, if fully subscribed, will value the company at about $410 million. The CDI holders will account for under 5 per cent of the company.
The company works like this: 99wuxian's roughly 20 million users are given access to an online marketplace, where they can buy items including hotel and movie tickets, fashion items, food and catering services. These providers will be charged between 5 and 7 per cent of the transaction.
Due to a very strict Chinese domestic vetting process for any merchant wanting to participate, the company's real selling point is its credibility though its high-profile business partners, including eight of the 10 largest banks in China - including Bank of China - and divisions of three of the country's major telecommunications companies, China Telecom, China Mobile and China Unicorn.
Investors should only rely on information contained in prospectus however the key points are summarised in the link below. This is general advice rather personal investment advice.
Tony Lewis from LeMessurier Securties (LemSec) said, "Whilst we are optimistic about the prospects of a share price rise after listing we are comfortable about low downside risk since the 20 million customers are effectively only valued at $20 each. Upon ASX listing 99wuxian.com Ltd will have more customers than any other ASX listed company."
We expect that this IPO will be very popular and may close early. In May the company raised over $6m in pre-IPO raising in a single day. We recommend that investors make application as soon as possible in case issue closes early. TUP was floated in late 2012 by the same promoters and the $0.60 TUP shares are currently trading at $1.77.
Share price is $0.40 and minimum IPO investment is 5,000 shares costing $2,000 and then in multiples of 1,000 shares.
Download the Prospectus and application here:
http://www.abnnewswire.net/lnk/32896H97
Download the Term Sheet here:
http://www.abnnewswire.net/lnk/V0ZSK7UC
About 99 Wuxian Ltd
99 Wuxian Ltd (ASX:NNW) aggregates over 300 million high quality consumers and 155 leading merchants through a marketplace embedded within the mobile apps of China's leading banks, telecommunications and insurance companies. 99 Wuxian enables increased customer satisfaction, loyalty and retention for its business partners by offering consumers the lifestyle convenience of purchasing virtual and physical goods on a mobile device.
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