Predict your next investment

Debt & Specialty Finance
legosecurities.hk

See what CB Insights has to offer

Investments

1

About Lego Securities

Lego Securities is the securities dealing arm of Lego Group.

Lego Securities Headquarter Location

Room 301, 3/F, China Building 29 Queen's Road Central

Hong Kong

+852-31888042

Predict your next investment

The CB Insights tech market intelligence platform analyzes millions of data points on venture capital, startups, patents , partnerships and news mentions to help you see tomorrow's opportunities, today.

Latest Lego Securities News

EQS-News : Pangaea Connectivity Technology Limited Propose to be Listed on the Main Board of the Stock Exchange of Hong Kong, Offer Price sets between HKUSD0.52 and HKUSD0.58 per share

Jan 29, 2021

01/29/2021 | 11:01am EST Message : *Required fields EQS-News / 29/01/2021 / 23:59 UTC+8?For Immediate Release? (Incorporated in the Cayman Islands with limited liability)(Stock code: 1473)Propose to be Listed on theMain Board of the Stock Exchange of Hong KongOffer Price sets between HKUSD0.52 and HKUSD0.58 per shareRaise up to approximately HKUSD88.4 million net proceeds[Hong Kong-30 January 2021] Pangaea Connectivity Technology Limited ("Pangaea" or the "Company", together with itssubsidiaries, the "Group", stock code:1473), a 30 years' experienced distributor of connectivity products for telecominfrastructure, data centre and IoT, announces its proposed listing on the Main Board of The Stock Exchange of HongKong Limited (the "SEHK") today. The Company principally sources and distributes connectivity products - devices totransmit and receive signal or data, and provides solutions and technical support for (i) telecom infrastructure; (ii)data centres; (iii) IoT and network connectivity products; and (iv) commercial lasers. According to Frost & Sullivan,the Company ranked third in terms of revenue among the service providers in the telecom and datacom connectivityproduct distribution market in the People's Republic of China (the "PRC") in 2019, with a market share of approximately4.4%.Pangaea plans to offer (the "Share Offer") an aggregate of 250,000,000 shares (subject to the over-allotment option)(the "Offer Shares"), of which 25,000,000 shares are for Hong Kong public offering (subject to reallocation), and theremaining 225,000,000 shares (including 25,000,000 employee reserved shares) are for placing (subject to reallocationand over-allotment option), at an offer price between HKUSD0.52 to HKUSD0.58 per shares (the "Offer Price"). The publicoffering will commence at 9:00am on 30 January 2021 and close at 12:00 noon on 4 February 2021. Trading of its shareson the Main Board of the SEHK is expected to commence on 19 February 2021 (Friday). The share will be traded under thestock code 1473 in board lots of 4,000 shares.Honestum International Limited is the sole sponsor. CMBC Securities Company Limited, Forwin Securities Group Limitedand Lego Securities Limited are the joint global coordinators, the joint bookrunners are CMBC Securities CompanyLimited, Crosby Securities Limited, Forwin Securities Group Limited, GLAM Capital Limited and Lego Securities Limited.CMBC Securities Company Limited, Crosby Securities Limited, Enhanced Securities Limited, Forwin Securities GroupLimited, GLAM Capital Limited, Lego Securities Limited and Victory Securities Company Limited are joint lead managers.Introduction of PangaeaFounded in 1990, Pangaea has been a distributor of telecom and datacom connectivity products and provides solution andapplication support to customers throughout their design and production cycle. In general, the Group's customersincorporate the components through design-in with its technical team and procure those components from the Group tobuild their communications modules and systems and IoT and network connectivity products. The end applications of theGroup's products can primarily be categorised into: (i) telecom infrastructure; (ii) data centres; (iii) IoT andnetwork connectivity products; and (iv) commercial lasers, which accounted for 68.8%, 17.3%, 11.5% and 2.3%,respectively, of the total revenue for the year ended 31 March 2020 and 77.0%, 15.9%, 6.0% and 1.0%, respectively, ofthe total revenue for the four months ended 31 July 2020.According to Frost & Sullivan, it is market practice to have distributors as middlemen in the industry due to thediversity and complexity of the telecom and datacom connectivity industry. Being a distributor with strong inhousedesign and technical capabilities, as well as self-own wireless and commercial laser application laboratories inShenzhen, Pangaea plays an important role in the industry chain to bridge the functionality gap between upstreamcomponent manufacturers and downstream customers with technical support and value-added services. With a strongin-house design and technical team, engineering expertise and in-depth knowledge of the supply chain, the Group canprovide suggestions in manufacturers' product upgrade and/or development of new products.Pangaea has long term and well-established business relationships with its manufacturer suppliers, who are mainlyglobal leading brand manufacturers in the respective products categories in the telecom and datacom connectivity marketaccording to Frost & Sullivan. As at 22 January 2021, the Group was an authorised distributor of seven manufacturerscomprising (i) five brand name manufacturers based in the U.S. or Japan for an average of 19 years; and (ii) twomanufacturers based in the PRC with effect from 1 September 2020 and 1 October 2020, respectively. For the years ended31 March 2018, 2019 and 2020 and the four months ended 31 July 2020, purchases attributable to the Group's five largestsuppliers accounted for approximately 87.7%, 88.2%, 87.1% and 91.7% of its total purchase, respectively. For the sameperiod, a substantial portion of its purchases, which accounted for approximately 88.4%, 90.1%, 89.5% and 93.4% of ourtotal purchases, respectively, were made directly from manufacturers.The Group also diligently cultivates long-term customer relationships with diversified customers, which mainly includestwo leading network system equipment providers, communications module manufacturers, providers of IoT and connectivitysolutions and products, and other distributors in the PRC. For each of the three years ended 31 March 2018, 2019 and2020 and the four months ended 31 July 2020, sales to the Company's five largest customers accounted for approximately49.1%, 40.3%, 47.9% and 64.4% of its total revenue, respectively, with sales to its largest customer accounted forapproximately 17.1%, 10.6%, 17.5% and 41.5% of its total revenue, respectively.The Group's revenue was approximately HKUSD843.1 million, HKUSD871.3 million, HKUSD970.9 million and HKUSD758.5 million for theyears ended 31 March 2018, 2019 and 2020 and the four months ended 31 July 2020, respectively. Its net profit for theyear ended 31 March 2018, 2019 and 2020 and the four months ended 31 July 2020 was approximately HKUSD34.9 million,HKUSD27.6 million, HKUSD33.4 million and HKUSD42.4 million, respectively.Pangaea's Competitive StrengthsWith over 30 years of proven track records, the Company believes that it has the following competitive strengths tocontribute to its continued success and potential for growth: ? Possesses strong design and technical capabilities with a strong and experienced in-house design and technical team comprised 33 engineers, of which about 22 members have over 10 years of experience in the industry ? Has its own wireless and commercial laser application laboratories in Shenzhen, the main tech hub of the PRC allows the Group to conduct reference designs, manufacture demo board, device testing and troubleshooting for its customers ? Has long term and well-established business relationships with its manufacturer suppliers, including five top brand name suppliers based in the U.S. or Japan, enables the Group to secure source of supplies and obtain the latest product and technology information, which increases its familiarity and knowledge of their products ? Diligently cultivates long-term customer relationships with its major customers which allows the Group to offer customer-driven products and provide reliable and efficient sourcing and technical support services ? Has an experienced and dedicated management team with significant industry expertise in the telecom and datacom connectivity industry which allows the Group to capture market opportunities, enhance its relationship with key customers and suppliers, and formulate and implement development strategies effectivelyValues Pangaea CreatesAs a channel partner of manufacturer suppliers in marketing and distributing their products, as well as a serviceprovider of customers to support their product roadmaps, Pangaea creates the following values to suppliers andcustomers, respectively.To customers, Pangaea can ? Provide specified sourcing and selection of components ? Proactively secure supply for customers ? Enable customers to have access to the latest advanced technologies and components from manufacturers to achieve optimal performance ? Provide bridging for the access of technologies between suppliers and customers ? Provide technical knowhow and talent to achieve customers' design at the optimal performance and reliability levels and satisfactionTo manufacturer suppliers, Pangaea can ? Create demand for components sourced from brand name component manufacturers ? Provide customers' feedback and suggestions for next generation products development and upgrade ? Provide bridging for the access of technologies between suppliers and customersUse of ProceedsThe Group intends to use the proceeds of the Share Offer, after deducting related underwriting fees and commissions andestimated expenses payable in connection with the Share Offer and assuming an Offer Price of HKUSD0.55 per Offer Share(being the mid-point of the Offer Price range), of approximately HKUSD88.4 million, for the following purposes: ? 65.6%, or HKUSD58.0 million is expected to be used to strengthen the Group's design and technical capabilities; ? 16.3%, or HKUSD14.4 million is expected to be used to broaden the Group's customer base by expanding the geographic reach of the Group's sales and technical support coverage; and ? 8.2%, or HKUSD7.2 million is expected to be used for strengthening its back office operational supports; and ? 9.9%, or HKUSD8.8 million is expected to be used as its general working capital- End -About Pangaea Connectivity Technology Limited (MORE TO FOLLOW) Dow Jones Newswires January 29, 2021 11:00 ET (16:00 GMT)

Lego Securities Investments

1 Investments

Lego Securities has made 1 investments. Their latest investment was in Winto Group as part of their PIPE on September 9, 2019.

CBI Logo

Lego Securities Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

9/17/2019

PIPE

Winto Group

Yes

1

Date

9/17/2019

Round

PIPE

Company

Winto Group

Amount

New?

Yes

Co-Investors

Sources

1

CB Insights uses Cookies

CBI websites generally use certain cookies to enable better interactions with our sites and services. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. You can read more about your cookie choices at our privacy policy here. By continuing to use this site you are consenting to these choices.