AMTD completes the HK IPO of CMGE, China’s largest independent mobile game publisher

On October 31st, 2019, CMGE Technology Group Limited (“CMGE”, Stock Code: 302.HK), China’s largest independent mobile game publisher and a leading IP game operator, was successfully listed on the main board of Hong Kong Stock Exchange. AMTD acted as a Joint Bookrunner and Joint Lead Manager of CMGE’s IPO, assisting the company to successfully land in the international capital market. The transaction is the 15th IPO issuance of AMTD in 2019, demonstrating AMTD’s strength to offer professional services to global leading companies in the international financial market. This issuance is also the IPO in which it has the largest amount of locked up capital during the year.

CMGE is China’s largest independent mobile game publisher and a leading IP game operator, owning a portfolio of popular and high-quality games. CMGE ranks 1st among independent mobile game publishers in China in terms of the accumulated revenue generated from IP-based games and the total number of games. CMGE has the largest IP reserve including Legend of Sword and Fairy, Xuan Yuan Sword and Monopoly, adding up to 99 games. In the meantime, the company has an industry-leading and multi-layered global publishing ability, owning one of the largest mobile game publishing networks in China. In 2017, the company was named a Global Top 50 Publisher by Apple, and ranked the third in terms of the number of new games recommended by Apple’s App Store in China. Since 2015, the company has published 97 mobile games in total and is operating 73 mobile games right now, among which 11 has a product life cycle longer than 3 years. CMGE puts great emphasis on IP and provides high-quality games for players worldwide through in-house R&D and as a publishing agent. The company also actively invests in IP and CP to build an ecosystem for IP games. Additionally, CMGE leverages its IP brands with a global perspective and cooperates with pan-entertainment industries including audio-visual, animation, derivative products and offline entertainment to build a world-class cultural brand.

CMGE offered a total of 461,000,000 shares with an over-allotment option no more than 69,150,000 Shares. The issue price was set at high end with HK$2.83 and the total issue size was approximately HK$1.5 billion (approximately US$191 million, if over-allotment option is fully exercised). This IPO has gained a great popularity among international professional investors. Prior to the book opening of international public offering, CMGE had locked up seven cornerstone investors: Dr. Peter Lee Ka-kit of Henderson Land Development Company Limited and Internet giants including China Literature, WB, Bilibili Inc., Kuaishou, Ourpalm and Wuhu 37. In addition, multiple well-known international institutional investors participated as anchor investors, bringing strong confidence to the market. The capital locked up in HKPO exceeded HK$71.6 billion. Hong Kong public offering was oversubscribed by over five hundred times and triggered a full clawback of 50% of the base offering size. This transaction is highly likely to become a landmark deal with the largest amount of locked up capital among all HK IPOs this year. CMGE’s IPO was also largely oversubscribed among institutional investors, having attracted both domestic and international long-term funds and a number of hedge funds active in Asian IPOs. The transaction has refreshed the recent Hong Kong market and imposed a profound influence and a significant market implication. As a Joint Underwriter, Joint Bookrunner and Joint Lead Manager, AMTD dug deeply into market demands through its influential network and strong comprehensive service capability and introduced cornerstone investors and anchor investors including well-known international Long-Only fund, having contributed a large number of market orders. Particularly, AMTD introduced a large non-price sensitive anchor order from a famous international Long-Only fund at the first day of book building. The order was the largest anchor order during the day and got allocated the most at the end, demonstrating AMTD’s remarkable sales capability in the equity market. AMTD’s performance was highly praised by the issuer as well as recognised by market investors.

As a comprehensive financial institution rooted in Hong Kong, based in the Greater Bay Area, backed by China and covering the globe, AMTD has always been committed to providing clients with open-end, innovative, diversified and professional financial services and helping more and more companies from different regions and diversified industries to expand business coverage, implement strategic goals and achieve global layout, especially assisting excellent and industry-leading enterprises in the Greater Bay Area to seize the precious strategic opportunity from the development of Greater Bay Area and to grow rapidly by utilizing the abundant resources and advantages provided by international capital markets in Hong Kong. The development and achievement of CMGE has shed light on the iconic synergy generated from Shenzhen-Hongkong cooperation. Apart from CMGE, AMTD also assisted leading companies in the Greater Bay Area to successfully complete HK or US IPO, including Guangzhou Rural Commercial Bank, the first locally incorporated bank in Guangdong Province being listed; Aoyuan Healthy Life, a renowned property management service and commercial operational service provider; Edvantage Group, the largest private tertiary education group for business in the Greater Bay Area; Mobvista, a leading SaaS platform for application developers worldwide; X Financial, a leading Fintech company in China; 7Road, a webpage game developer and operator ranking first in China; Aptorum Group, a leading medical innovation and bio pharmaceutical company in Hong Kong; and Weigang, China’s leading comprehensive hazardous waste incineration turnkey solution provider. In addition, AMTD also assisted blue chip companies in Hong Kong including Far East Consortium, New World Development, Sun Hung Kai, Regal Hotels, Emperor Group and CSI Properties Limited and leading companies in the Greater Bay Area, including China Aoyuan Group, Guangzhou Metro, Logan Estate, LVGEM, R&F Group and China South City to land successfully in the international debt market.