On 13 July, BExcellent Group Holdings Limited (“BExcellent Group”; Stock Code: 1775.HK), the first Hong Kong-based educational enterprise, was officially listed on the Stock Exchange of Hong Kong. During the year, BExcellent Group became the fifth educational enterprise to successfully list on the Hong Kong Stock Exchange with First Capital Securities, a wholly-owned subsidiary of China First Capital Group Limited (“CFCG” or “the Group”; Stock Code: 1269.HK) serving as designated Co-Manager.
On the first day of the listing, BExcelellent Group’s stock price remained robust, surging to an intraday high of HK$1.45, closing at HK$1.32, 22% above the issue price of HK$1.08 with trade volume of 235 million shares and turnover of HK$320 million.
Image: At the BExcelellent Group’s listing ceremony celebrations
BExcellent Group is today a leading provider of private supplementary secondary school education services in Hong Kong. It owns 16 branch schools and operates 18 teaching centres with a total of 128 classrooms across all of Hong Kong. Each year, more than 10 thousand students are educated in that schools. BExcellent Group primarily provides services in three major business categories of private supplementary secondary school education services, private secondary day school services, ancillary educational services and related products. The 2017 revenue share covering private supplementary secondary school education services, private secondary day school services, and ancillary education services and related products accounted for 88.48%, 3.5% and 8.02% of the BExcellent Group’s total aggregate revenue, respectively. Clearly, a significant portion of BExcellent Group’s revenue is derived from private supplementary secondary school education services.
According to the Euromonitor Report, the private secondary school education services industry in Hong Kong is highly fragmented and fiercely competitive. As of February 2017, there was a total classroom capacity of approximately 17,493 students throughout the Hong Kong market. The top 10 institutions captured approximately 63.5% of market share with BExcellent Group being the market leader at 20.3% of the total in terms of size of classroom seating capacity. As of February 2017, there were approximately 64 private secondary day schools in Hong Kong with the market share of the top 10 schools making up a total of 37.4% while other players comprise a fragmented market presence amongst which BExcellent Group holds a 12.1% share of the market.
Image: Mr. Philip Kan, Director of First Capital International Finance Limited, a wholly-owned subsidiary of CFCG and Ms. June Leung, Director of Bexcellent Group
During the listing, First Capital Securities acted as BExcellent Group’s Co-Manager. This is the seventh venture (fourth educational enterprise) since the start of 2018 in which First Capital Securities has provided financial services to mainland enterprises listing in Hong Kong. Previously, First Capital Securities has undertaken the key role of underwriters for various educational institutions, including: 21st Century Education, China Xinhua Education Group, TOP Education, Yuhua Education, Minshen Education, and the China New Higher Education Group, among others.
Taking advantage of the vast resources and comparative strengths of CFCG, First Capital Securities is committed to promoting superior overseas investment and financing channels for both investors and enterprises in China. The Group helps overseas investors participate in China's capital markets by providing professional financial services, including initial public offering (IPO) underwriting, placement of new shares, refinancing, corporate level mergers and acquisitions, restructuring, financial consultation, bond issuance and structured financing, among other professional services.
According to statistics from a Deloitte report, the number of recent IPOs in Hong Kong ranked highest globally during the first half of 2018, with total proceeds amounting to HK$50.3 billion compared to only 68 newly listed shares in the first half of 2017, resulting in a year-on-year increase of 49%. Under favorable circumstances like these, First Capital Securities will work diligently to become an integrated financial service provider, building a solid base throughout the local sector while aiming for worldwide coverage. CFCG was blessed with considerable market power and are actively meeting the demands of investment and financing services for cross-border companies aiming to list in Hong Kong. CFCG has pragmatically promoted internationalisation and established a worldwide business network and execution capabilities, as well as scaled-up synergies within the Group that together have created an enriched financial ‘toolbox’ to construct a diversified business “portfolio” to promote innovative financial services while enhancing the “CFCG” brand in order to create a unique ‘educational investment bank’ that can help realise fast and steady development. At the same time, the Group leverages its various brokerage licenses to assist personal and institutional clients with services for financial products such as various trading channels for Hong Kong Stock Exchange and exchange-traded funds and bonds, providing customers with comprehensive and professional financial services.