EDICO Holdings Limited Announces Details of Proposed Listing on the GEM of SEHK

EDICO Holdings Limited Announces Details of Proposed Listing on the GEM of SEHK

Offering of 250,000,000 Shares through Share Offer and Offer Price Ranging from HK$0.20 to HK$0.24 per Share

HONG KONG, Jan 23, 2018 - (ACN Newswire) - EDICO Holdings Limited ("EDICO" or the "Group"; Stock Code: 8450), a financial printing company in Hong Kong, has announced the details of its proposed listing on the Growth Enterprise Market ("GEM") of The Stock Exchange of Hong Kong Limited ("SEHK").

Offering Details
EDICO intends to offer a total of 250,000,000 shares. The Share Offer comprises an offer of 25,000,000 shares under the Hong Kong Public Offer (subject to reallocation) and 225,000,000 shares under the International Placing (subject to reallocation and the offer size adjustment Option) at an indicative Offer Price ranging from HK$0.20 and HK$0.24 per Offer Share. After deduction of relevant expenses and assuming an Offer Price of HK$0.22 per Offer Share, being the mid-point of the proposed Offer Price range of HK$0.20 to HK$0.24 and assuming the Offer Size Adjustment Option is not exercised, proceeds are estimated to be approximately HK$32.2 million.

The Public Offering has commenced today (23 January 2018) and will end at noon on 26 January 2018 (Friday). The final Offer Price and results of allocation will be announced on 1 February 2018 (Thursday). Trading of EDICO's shares will commence on the GEM of SEHK on 2 February 2018 (Friday) under the stock code 8450. Shares will be traded in board lots of 10,000 shares. Giraffe Capital Limited is the Sole Sponsor while Koala Securities Limited is the Sole Bookrunner and Joint Lead Manager and Yellow River Securities Limited is the Joint Lead Manager of the listing.

Investment Highlights
As one of the top 10 largest financial printing companies in Hong Kong , the Group provides a wide range of integrated financial printing services to customers both by engagement of specific service and on an integrated project basis. The Group strive to provide customised and premium design services to customers with its design capabilities widely recognised by more than 200 international awards. With an in-house translation team, the Group can flexibly allocate translation works between their in-house translation team and translation subcontractors, which enables better utilisation of internal resources and more effective control over operation costs.

Led by a stable and experienced management team with most of its department heads having more than ten years of experience in the financial printing industry, and with the continuous growth of the IPO market in Hong Kong and increasing number of listed companies in the SEHK, the management team of EDICO is confident that it can continue to grow and maintain its competitiveness in Hong Kong in the future.

Future Strategies
Upgrading Central office facilities and setting up new office
EDICO intends to relocate its Kowloon office to a new office of about 4,000 - 5,000 sq ft in Central and Western District in August 2018. The close proximity between the new office and the existing Central office could enable centralisation of various offices on Hong Kong Island for optimising business operations and increase operational efficiency by enhancing communication between offices. The Group also plans to upgrade the Central office to enhance its competitiveness, including renovating the office premises and upgrading conference room equipment.

Expanding workforce
EDICO values its employees and believes that they are an important strategic resource for success and development. The Group intends to continue providing training to its staff to improve their skills and develop their potential as well as offer various staff benefits. The Group will also recruit experienced and motivated sales representatives, operations staff and translators to accommodate the growing needs of customers and requests for customised services.

Upgrading and acquiring equipment and software
Equipment and information technology are essential integral resources for the continual provision of EDICO's services. The Group relies on its project management system, Prodo, to manage projects and other third party software to prepare and handle documents requested by customers. The Group also uses specific design software to prepare creative content output. EDICO intends to upgrade and acquire more technology equipment and software in order to strengthen its market position and differentiate itself from its competitors and enhance competitiveness.

Use of Proceeds
Assuming an Offer Price of HK$0.22 per share (being the mid-point of the indicative Offer Price range) and that the Offer Size Adjustment Option is not exercised, after deduction of underwriting fees and estimated expenses payable by the Group in relation to the share offer, net proceeds are estimated at approximately HK$32.2 million and will be used to:

Item / Percentage
Upgrading Central office facilities and setting up new office: 48.4%
Expanding workforce: 26.0%
Upgrading and acquiring equipment and software: 15.6%
General working capital: 10.0%
Total: 100%

Financial Highlights
(HK$'000) Year ended 30 September
2015 2016 2017
Revenue 65,329 76,725 84,155
Gross profit 36,260 42,755 48,891
Gross profit margin 55.5% 55.7% 58.1%
Profit for the year 10,633 10,754 10,216

About EDICO Holdings Limited
Established in 2009, EDICO is a financial printing services provider in Hong Kong that is principally engaged in providing 24-hour integrated printing services in Hong Kong for customers mainly in the financial and capital markets. According to Ipsos Report, the Group is ranked ninth among financial printing services providers in Hong Kong in 2016 in terms of total revenue contributed by the industry. The Group offers a wide range of integrated printing services. Its customers are mostly listed companies or companies applying to be listed on the Stock Exchange of Hong Kong therefore it mainly handles (i) listing-related documents; (ii) periodical reporting documents required by the HKEx to be published in accordance to the Listing Rules and the GEM Listing Rules; (iii) compliance documents such as announcements and circulars; and (iv) other miscellaneous and marketing collaterals.

Media Enquiries:
Strategic Financial Relations Limited
Vicky Lee Tel: (852) 2864 4834 Email: vicky.lee@sprg.com.hk
Jessica Siu Tel: (852) 2114 2820 Email: jessica.siu@sprg.com.hk
Queenie Chan Tel: (852) 2864 4851 Email: queenie.chan@sprg.com.hk
Website: www.sprg.com.hk



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