A woman walks past Exchange Square which houses the Hong Kong Stock Exchange in Hong Kong on April 27, 2022. (DALE DE LA REY / AFP)

Hong Kong e-commerce platform Yoho Group debuted in the Hong Kong Stock Exchange after raising HK$74.7 million ($9.52 million) amid a slowdown in companies going public in the city. 

The stock ended at HK$2.1 on Friday, giving the company a market capitalization equivalent to HK$1.05 billion. The closing price remained the same as the initial public offering price.

Yoho’s public share sale came as Hong Kong’s IPO market had cooled, with external financial uncertainties coupled with the omicron outbreak weighing on market sentiment.
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From April to November of 2021, online retailer Yoho Group swung to a net loss of HK$13.9 million from a net profit of HK$18.6 million a year ago, while its revenue rose nearly 72 percent year-on-year to about HK$497 million, the company reported in its exchange filing

The latest data from the global accounting company PwC suggests that Hong Kong’s IPO volumes are predicted to fall by nearly 92 percent to HK$17.1 billion in the first six months from a year earlier.

Established in 2013, Yoho sells consumer electronics and home appliances. From April to November of 2021, the online retailer swung to a net loss of HK$13.9 million from a net profit of HK$18.6 million a year ago, while its revenue rose nearly 72 percent year-on-year to about HK$497 million, the company reported in its exchange filing.

Its gross merchandise value for the 12 months ended March 2021 stood at HK$506.2 million.

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On the back of advancements in online payment systems and the increasing consumer preference for online shopping, the Hong Kong-based company is expected to further tap into the city’s e-commerce boom.

Over the past five years, online retail sales in Hong Kong rose by more than 74 percent to HK$23 billion, according to consulting firm Frost & Sullivan, which also estimates the sector’s sales will grow at a compound annual growth rate of around 13.4 percent, hitting HK$42.1 billion by 2026.

Yoho plans to spend the IPO proceeds on growth in its home market as well as on expanding its product offerings. 

It will also inject parts of the capital to scale up its cross-border e-commerce business operations by launching a mini-app on the WeChat platform and setting up flagship stores on its mainland counterparts Tmall and JD.com, according to the company’s prospectus.

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