LONDON — Hypebeast Ltd., the Hong Kong-based digital media, creative solutions and e-commerce company, plans to shift up a gear and transfer its share listing from GEM, or growth enterprise market, to the Main Board of The Stock Exchange of Hong Kong Limited.
The last day of dealing on GEM will be March 7, and trading on the Main Board will commence at 9 a.m. on March 8.
The company has been trading on GEM, which caters to small-medium enterprises, since its IPO in April 2016. Moving to the Main Board will mean Hypebeast can enhance its profitability and profile and appeal to a broader range of institutional and retail investors.
Kevin Ma, founder and chief executive officer of Hypebeast, said: “The public recognition as a listed company on a globally recognized primary financial exchange will allow us to establish further business relationships across regional and global markets that we currently operate in. It will open doors to a more diversified business portfolio for enhanced profitability.”
The site that began as a personal blog for Ma has grown into an empire at the forefront of global youth culture. Its business includes media brands Hypebeast, Hypebae, Hypekids, Popbee, Hypebeast magazine, e-commerce store HBX, creative agency Hypemaker, a first brick-and-mortar store in Central, Hong Kong, and the fashion festival Hypefest, which 10,000 consumers attended in New York last year.
“My confidence in our company and in all of us has never been greater,” Ma wrote in an internal memo seen by WWD. “As we continue our journey as a publicly listed company on the Main Board of the Hong Kong Exchange, we are even more well-equipped to maintain our position as the forefront media company representing global youth culture, tackling challenges amidst unpredictable market changes.”
“Our goal is to become a lifestyle, a part of everyone’s daily life,” Ma later said. “We are building a business presence in China, along with a team of experts and talents that could master the business know-how in this vast market. We will definitely keep building surprising and unforgettable cultural experiences for our global audiences,” he added.
For the nine months ended Dec. 31, the group saw revenue reach 487 million Hong Kong dollars, or $62.04 million, an 67.5 percent increase year-on-year. Specially, a 114.2% increase in the e-commerce revenues and 48.4% increase in digital media revenues year to date.