The cookware brand Carote (02549.HK) is conducting its initial public offering (IPO) from September 23 to 26. The company plans to issue approximately 130 million shares globally, with a pricing range of HKD 5.72 to 5.78 per share. Each lot consists of 500 shares, resulting in an entry cost of approximately HKD 2,919, with the potential to raise a maximum of HKD 750 million. Subscriptions will close this Thursday; consequently, pricing is expected to be finalized on Friday, with shares anticipated to commence trading on October 2. BNP Paribas and CMB International are serving as sponsors for this IPO.

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Carote (02549.HK)

The mainland cookware brand Carote is undertaking its initial public offering (IPO) from September 23 to 26. The company intends to issue approximately 130 million shares globally, with 10% designated for public offering in Hong Kong and the remaining portion allocated for international placement. The share price is established within the range of HKD 5.72 to 5.78, with each lot comprising 500 shares, resulting in an entry cost of approximately HKD 2,919. The maximum fundraising target is HKD 750 million, with shares anticipated to commence trading on the Hong Kong Stock Exchange on October 2, 2024 (Wednesday).

The company plans to allocate approximately 35% of the proceeds towards acquisition and investment opportunities, 25% for product research and development, 20% for the expansion of sales channels, 10% for ESG-related investments, and around 10% for working capital and other general corporate purposes.

Company Overview

Carote, a leading global cookware brand headquartered in Hangzhou, launched its brand in 2016. Over the past eight years, the company has established a significant presence in online cookware segments across major markets, including China, the United States, Western Europe, Southeast Asia, and Japan, thereby becoming one of the fastest-growing cookware brands worldwide.

From 2021 to 2023, as well as in the first quarter of this year, Carote introduced 520, 1,305, 1,374, and 361 stock-keeping units (SKUs) of proprietary brand products, respectively. As of September 14, 2024, Carote’s product portfolio includes over 2,500 SKUs encompassing various cookware categories, such as cooking tools, kitchen utensils, and drinkware.

Financial Data

In terms of financial performance, Carote reported revenue of RMB 1.58 billion last year, representing an annual increase of nearly 110%. Notably, the brand business accounted for 69.1% of total revenue, while the ODM (Original Design Manufacturer) business contributed 30.9%. Furthermore, the profit attributable to equity holders reached RMB 240 million, reflecting an increase of nearly 120%. The gross profit amounted to RMB 570 million, indicating an increase of approximately 11%, with a gross margin of 35.7%, which represents a slight decline of 0.1 percentage points.

During the performance review period, Carote’s ODM and brand businesses continued to grow. Specifically, brand revenue surged from RMB 2.83 billion in 2021 to RMB 13.79 billion in 2023, achieving a compound annual growth rate of 120.7%. For the three months ending March 31, 2024, brand revenue amounted to RMB 450 million, representing an increase of 82.6% year-on-year.

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