And it’s been a good start for the renowned interior design company. The first day of trading saw shares surge 30 per cent against the offer price.
July 12th, 2018
Shares of Steve Leung Design Group Limited (SLD Group) commenced trading on the Main Board of The Stock Exchange of Hong Kong Limited on 5 July. Shares closed at HK$1.15 per share on the first day of trading. SLD Group’s public offering received overwhelming response, with the shares about 125 times over-subscribed.
The studio was founded in 1997 by Steve Leung and has grown phenomenally. SLD Group has over 500 employees today, is headquartered in Hong Kong, and has offices in Beijing, Shanghai, Guangzhou, Chengdu and Shenzhen. It is a member of the Jangho Group, which operates in architecture and construction, healthcare and medical services.
Leung is the first Chinese President of the International Federation of Interior Architects/Designers, and is serving in the position from 2017 to 2019.
A pre-listing press release (available for viewing on the SLD Group website) provided impressive business statistics. The SLD Group served over 390 clients during the ‘track record period’ (that is, financial year 2015 to financial year 2017), including hotel operators and developers such as Shangri-La Hotels and property developers (its key client group) in the PRC and Hong Kong such as K.Wah Real Estates, Yanlord Land Group, China SCE Property and Agile Group. Other clients include restaurant operators, furniture and lifestyle product brands, and private clients.
Also divulged were details of the SLD Group’s revenue, which rose from HK$249.9million in financial year 2015 to HK$434.8million in financial year 2017. The good performance is attributed to the growth of the real estate market in the PRC.
SLD Group is expecting to enjoy a stable operating market in the years ahead, with the PRC’s real estate market projected to grow steadily and an increasing demand arising for interior design services focused on areas including the elderly and improved medical care. SLD Group intends to use around 50 per cent of the proceeds from the listing on strengthening its interior design services and developing specialised services, hand in hand with an expansion of its design teams and offices.
Also stated was the intention to recruit more product designers and direct more resources to developing the latest product design skills, technologies and processes. Additionally, SLD Group intends to expand its business through the acquisition of smaller companies in the PRC.
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