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Chinese digital retail service provider Dmall completes CSRC registration for Hong Kong IPO

  • The Shenzhen-based company, backed by Tencent and Lenovo, plans to sell up to 86 million shares, according to a statement posted on the CSRC website

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Dmall’s self-service machines are used by many retailers in mainland China and across Asia. Photo: Bloomberg
Zhang Shidongin Shanghai

Dmall, a digital retail services provider backed by Tencent Holdings and Lenovo Group, has completed its registration with China’s securities regulator for its overseas initial public offering (IPO), paving the way for a stock sale in Hong Kong.

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The information was disclosed in a statement posted on China Securities Regulatory Commission’s (CSRC) website on Friday. Dmall plans to sell up to 86 million shares in Hong Kong and will have to re-register with the regulator if it fails to complete the listing within 12 months, according to the statement. Dmall had previously applied to list on the Hong Kong stock exchange in 2022 and 2023.

Dmall is expected to raise about US$500 million from the IPO, according to people familiar with the matter.

Shenzhen-based Dmall is the latest mainland-based company to take advantage of a pickup in demand for new shares on Asia’s fourth-largest stock market after a rebound in stocks and a pledge by the CSRC to encourage overseas listings by Chinese firms. A rally sent the benchmark Hang Seng Index into a bull market in May before the momentum faded recently.

The company was founded in 2015 by Zhang Wenzhong, who is also the founder of supermarket operator Wumart. Dmall’s technology, which enables digital transformation of bricks-and-mortar retailers to improve customer experience and efficiency, is used by more than 600 customers, including Metro and Lawson, according to the company’s website. For instance, customers can find out the sustainability metrics and supply-chain journey of fresh produce, even live fish, simply by scanning a quick response code.
Peter Yan (front left), CEO of Cyberport, and Zhang Wenzhong (front right), founder of Dmall, sign an agreement to set up the company’s headquarters in Cyberport in January last year. Photo: Xiaomei Chen
Peter Yan (front left), CEO of Cyberport, and Zhang Wenzhong (front right), founder of Dmall, sign an agreement to set up the company’s headquarters in Cyberport in January last year. Photo: Xiaomei Chen

Dmall entered Hong Kong in 2020, relying on DFI Retail Group, formerly known as Dairy Farm Holdings, as its major client. It helped install self-service machines that many local shoppers now use at DFI’s Wellcome and Market Place supermarket chains. Last year, the company signed an agreement to set up its headquarters in the city’s Cyberport business park.

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