Lemo Services Co., Ltd. (02539.HK) has launched its Hong Kong IPO, with the offering period running from November 25 to November 28. The company plans to issue a total of 5,555,600 H-shares globally, with a reallocation mechanism in place. The offer price will range from HKD 27.0 to 40.0 per share, with a minimum investment of 100 shares, amounting to an entry fee of approximately HKD 4,040.35 at the highest price. The shares are expected to list on the Main Board of the Hong Kong Stock Exchange on December 3. The joint sponsors for the IPO are CITIC Securities International and Shenwan Hongyuan (Hong Kong) Financing Limited.

Lemo Services: The Leading Provider of Automated Massage Services in China

Offer Breakdown:Hong Kong Public Offering: 10% (555,600 shares, subject to reallocation)

International Offering: 90% (5,000,000 shares, subject to reallocation)

Offer Price: HKD 27.0 to 40.0 per share; minimum of 100 shares per lot; entry fee of approximately HKD 4,040.35 at the highest price.

Offer Period: November 25–28 (expected pricing date: December 1)

Listing Date: December 3

IPO Sponsors: CITIC Securities International and Shenwan Hongyuan (Hong Kong) Financing Limited.

Company Overview

Lemo Services is the largest provider of automated massage services in China, offering massage equipment deployed in public spaces. According to Frost & Sullivan, the company ranked first in China’s machine-based massage service market by transaction volume for three consecutive years from 2022 to 2024, holding a market share of 42.9% in 2024. Lemo operates with a "direct + partner" business model and has established over 48,000 service outlets and deployed more than 533,000 machines. The company has served over 174 million consumers to date.

Financial Information

According to the prospectus, Lemo Services reported revenue of approximately RMB 330 million, RMB 587 million, and RMB 798 million for 2022, 2023, and 2024, respectively. Net profits during the same periods were approximately RMB 6.48 million, RMB 87.34 million, and RMB 85.81 million. For the first eight months of 2025, the company generated a revenue of approximately RMB 631 million and a net profit of approximately RMB 88.55 million. Based on an offer price of HKD 33.50 per share, the company expects to raise a net amount of approximately HKD 1.473 billion. The funds will be used for expanding service coverage (approximately 60%), enhancing technology (approximately 20%), brand building (approximately 10%), and working capital (approximately 10%).

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This promotion is effective from 20 May 2025 until further notice. Certain high-profile IPOs may be excluded. The actual interest rates and fees charged are those shown in the uSMART App subscription interface; statutory government and exchange levies will still apply. The company reserves the right to amend, suspend or terminate the above offer or its terms and conditions at any time without prior notice, and its interpretation shall be final.

How to Subscribe for Lemo Services via uSMART HK

The uSMART HK App features an IPO Centre with exclusive perks, allowing clients to subscribe instantly to public offerings. After logging into the app, tap "Trade" at the bottom-right, go to "IPO Subscription," select Lemo Services, tap "Public Offer," enter your subscription quantity, and submit your order.

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