Excalibur Global Financial Holdings Limited Announces Details of Proposed Listing on the GEM Board of SEHK

Tuesday, 2 January 2018, 18:58 HKT/SGT

Offering of 200,000,000 Shares through Public Offer and Placing;
Price Ranges from HK$0.375 to HK$0.425 per Share

HONG KONG, Jan 2, 2018 - (ACN Newswire) - Excalibur Global Financial Holdings Limited ("Excalibur" or the "Group"), a futures brokerage services provider in Hong Kong, announced the details of its proposed listing on the GEM Board of The Stock Exchange of Hong Kong Limited ("SEHK").

Offering Details
Excalibur intends to offer a total of 200,000,000 shares. The Share Offer comprises an offer of 20,000,000 shares under the Public Offer (including 2,000,000 Employee Reserved Shares) and (subject to re-allocation and Offer Size Adjustment Option) and 180,000,000 shares under the Placing (subject to re-allocation and Offer Size Adjustment Option) at an indicative Offer Price ranging from HK$0.375 and HK$0.425 per Offer Share. After deducting relevant expenses, and assuming an Offer Price of HK$0.4 per Share (being the mid-point of the indicative Offer Price range) and the Offer Size Adjustment Option is not exercised, net proceeds from the Share Offer are estimated to be approximately HK$49.6 million.

The Public Offering commenced on 29 December 2017 (Friday) and will end at noon on 4 January 2018 (Thursday). The final Offer Price and results of allocation will be announced on 11 January 2018 (Thursday). Trading of Excalibur's shares will commence on the GEM Board of SEHK on 12 January 2018 (Friday) under the stock code 8350. Shares will be traded in board lots of 8,000 shares each.

Alliance Capital Partners Limited is the Sole Sponsor, and together with Head & Shoulders Securities Limited are the Joint Bookrunners and Joint Lead Managers, China Finance KAB Limited is the Co-lead Manager, and Fortune (HK) Securities Limited is the Co-Manager of the listing.

Investment Highlights

With over 20 years of business operations in Hong Kong, the Directors of the Group believe that Excalibur has established itself as a reputable and trusted futures brokerage firm which enable them to attract new clients from the market and solicit client referrals from existing clients. The Group currently provides clients with access to locally and globally traded futures and options products. In 1H2017, approximately 74.6% of the Group's total revenue was generated from futures products (such as oil, gold and forex futures) traded on Chicago Mercantile Exchange (CME), while approximately 23.3% was from the Hong Kong Futures Exchange (HKFE). Remaining 2.1% was from other exchange market.

Personalised client services
The Group generally does not engage in price competition with its competitors, but focus on providing premium service to its clients who are willing to pay for reliable and personalised services and speedy access to markets through our online trading platform. Its clients are also served by experienced AEs who are equipped with in-depth knowledge in a wide range of futures and options products and are able to advise clients and keep them informed of market developments on a timely basis. Furthermore, the Group provides clients' service on a 24-hour basis on weekdays for trading, settlement, accounting and technical support to its clients.

Efficient, integrated and stable online trading platform and IT system
An efficient, integrated and stable online trading platform is a key factor in developing and maintaining loyalty of the Group's clients and in attracting new ones. Through online trading platform of the Group, clients could engage in the trading of futures and options products traded over the HKFE as well as across major global futures exchanges on a real time basis when markets are open; access real time market information, and access their account details and history, charting systems, news feeds, historical market data and certain other tools, including technical analysis services.

Experienced management and AE team
The Group is led by a team of experienced professionals with substantial expertise in formulating corporate strategies, monitoring compliance and financial performance, controlling credit risks (particularly those risks arising from market fluctuations) and managing daily operations. With their experience and valuable knowledge in the industry, the Group will be able to respond to and cope readily with rapidly evolving and fluctuating market conditions.

Streamlined and efficient organisational structure
The Group has a streamlined organisational structure whereby all decisions in relation to the execution and settlement of clients' orders are directly supervised by the Group's responsible officers. It believes that this facilitates efficient execution and settlement of clients' orders.

Future Strategies

As the PRC government continues to encourage growth in the PRC futures industry as well as the development of Qianhai as an important spot commodities trading venue against the backdrop of an increasing number of sophisticated investors looking to diversify their investments and trading strategies, the Group intend to capitalise on such opportunity by increasing its presence and visibility in the PRC as a "go to" provider of reliable futures brokerage services through the below strategies:

Enhance marketing resources in the PRC
The Group intends to enhance its marketing resources in the PRC to capture opportunities from an increase in demand and appetite for futures investments in the PRC, including the establishment of an office in Qianhai to launch its marketing campaign in the PRC.

Establish and commence stock option trading business
The Group will continue to expand its product offerings to clients including, among other things, to commence offering broking services relating to stock options to its clients and to allow them to acquire these products on a margin basis.

Enhance the IT capability of the Group
The Group plans to sustain its competitiveness among local futures brokerages through enhancing its online trading system and IT infrastructure to ensure its clients are provided with seamless and speedy access to the futures market.

Expand manpower for providing more customised client service and to strengthen human resources
The Group will increase its manpower to provide more customised and value-added services, including the establishment of a research department to issue research reports, regular updates and market commentary to its clients.

Use of Proceeds
Assuming an Offer Price of HK$0.4 per share (being the mid-point of the indicative Offer Price range) and that the Offer Size Adjustment Option is not exercised, net proceeds from the Share Offer are estimated to be approximately HK$49.6million and will be applied as follows:

Item / HK$ (Million) / Percentage
Enhancing marketing resources in the PRC / 22.1 / 44.5%
Establishing and commencing stock options business and to provide margin financing to clients / 14.1 / 28.5%
Enhance IT capability / 7.2 / 14.6%
Expand manpower for providing more customised client service and to strengthen human resources / 6.1 / 12.4%
Total / 49.6 / 100%

Financial Highlights
(HK$'000) For the Year Ended 31 December Six months ended 30 June
FY2015 FY2016 1H2017
Revenue 43,424 40,776 13,608
Profit for the year 18,918 11,788 287

- Revenue for the four months ended 31 October 2017 increased by approximately HK$3.2 million (approximately 31.4%) as compared to approximately HK$10.3 million for the same period of 2016
- Profit before taxation for the four months ended 31 October 2017 increased by approximately 37 times as compared with the same period in 2016

About Excalibur Global Financial Holdings Limited
Excalibur Global Financial Holdings Limited is a provider of futures brokerage services in Hong Kong to its clients since 1994 and the Group currently provides its clients with access to locally and globally traded futures and options products. The Group's business is carried out through the Company's wholly-owned subsidiary, Excalibur Global HK, which is a corporation licensed with the SFC to carry out type 2 (dealing in futures contracts) and type 5 (advising on futures contract) regulated activities in Hong Kong. Excalibur Global HK is also licensed with the SFC to carry out type 1 (dealing in securities) regulated activity in Hong Kong while currently the licence allows the Group to introduce its clients to other licensed securities brokerages in Hong Kong.

Media Enquiries:
Strategic Financial Relations Limited
Mandy Go Tel: (852) 2864 4812 Email: mandy.go@sprg.com.hk
Keris Leung Tel: (852) 2864 4863 Email: keris.leung@sprg.com.hk
Antonio Yu Tel: (852) 2114 4319 Email: antonio.yu@sprg.com.hk
Website: www.sprg.com.hk

Topic: Press release summary Sectors: Daily Finance, Daily News
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