Herbs Generation Group (02593.HK)

Company Overview: Herbs Generation Group is a diversified supplier of health supplements, beauty, and skincare products in Hong Kong.

Shares Offered: A total of 33.3336 million H shares will be globally issued, with 10% allocated for the Hong Kong public offering and 90% for the international offering.

Offer Price: The indicative price range is HKD 3.75 to HKD 4.15 per share, with a minimum lot size of 800 shares. The entry cost for one lot is approximately HKD 3,353.48.

Subscription Period: December 11 - December 16.

Listing Date: December 19.

IPO Sponsor: Agricultural Bank of China International (ABC International).

Herbs Generation Group (IPO Code: 02593) begins its public offering today (December 11) and will close on December 16. The local health supplement supplier, founded by TVB Best Actor Roger Kwok Chun On and his elder sister Kwok Chi Yan, plans to issue 33.334 million shares, with 10% allocated for the Hong Kong public offering. The price range is set between HKD 3.75 and HKD 4.15, raising up to HKD 140 million. The minimum investment is HKD 3,353.5 per lot of 800 shares, and the shares are expected to be listed on December 19. ABC International serves as the sole sponsor of the IPO.

(Image source: Herbs Generation Group prospectus)

Company Introduction

Herbs Generation Group is a Hong Kong-based health supplement supplier founded by TVB Best Actor Roger Kwok Chun On and his elder sister Kwok Chi Yan. Prior to the IPO, Kwok Chi Yan and her husband Lee Yat Sing hold 90% and 10% of the company's shares, respectively. Roger Kwok serves as a non-executive director and brand ambassador, contributing strategic marketing advice.

The IPO prospectus highlights that Herbs Generation Group has been rooted in Hong Kong for over 20 years and specializes in developing, marketing, and selling self-branded products through a multi-channel sales model. As of November 24, 2024, the Group operates eight proprietary brands, including Herbs Generation, ZINO, Cheng Tung, Ume Ya, Man Po, Man Gei, Green Concept Nutrition, and Graceful.

According to the Frost & Sullivan report, in 2023, Herbs Generation Group ranked fifth among international and local suppliers of immune system supplements in Hong Kong, with a 4.9% market share in retail sales. For overall health supplement retail sales, the Group ranked tenth, with a 3.6% market share.

Financial Information

During the track record period, the number of self-operated stores increased from 4 on January 1, 2021, to 29 as of June 30, 2024. As of November 24, 2024, Herbs Generation Group operates 33 self-operated stores across various districts in Hong Kong.

From 2021 to 2023, the Group recorded revenues of approximately HKD 189 million, HKD 208 million, and HKD 251 million, respectively, with corresponding profits of HKD 23.18 million, HKD 27.97 million, and HKD 39.50 million. For the first half of 2024, the Group achieved revenues of HKD 118 million and a profit of HKD 7.48 million.

You can subscribe to the new Hong Kong IPO through uSMART HK.

The uSMART HK app features a dedicated IPO center, offering exclusive promotions for customers to subscribe to public offerings in real time. After logging in the uSMART HK APP, select the transaction at the bottom right, click "IPO Subscription", select the IPO you want to subscribe, click "Public Subscription", fill in the subscription number and send the order.

✅ IPO financing 0%*

✅ 15x purchasing power^

（Source: uSMART HK）