Ipsos Business Consulting engaged as Industry Consultant by Grand Talents Group Holdings Limited for its listing on the GEM Board of the Hong Kong Stock Exchange (stock code: 8516.HK）on Oct 15, 2018. The group positions itself as an established subcontractor engaged in civil engineering works. The group principally repair and maintain structures of roads and highways in Hong Kong, with focus in Kowloon and Hong Kong Island.
Ipsos Business Consulting's IPO consulting team conducted an Independent Market Review, covering the industry development trends, market demand and competitive landscape of the roads and highways management and maintenance industry in Hong Kong. During the IPO process, Ipsos Business Consulting collaborated with the Group, IPO sponsor and its legal advisors to complete the contents of the prospectus as well as address all follow-up questions from the HKEX.
According to Ipsos Business Consulting's analysis, the revenue of the roads and highways management and maintenance industry in Hong Kong increased from around HK$1,488.7 million in 2012 to around HK$1,646.6 million in 2017, at a CAGR of approximately 2.0%. The stable growth of the industry was mainly contributed by the sustainable capital allocation from the Government and consistent demand of repair and maintenance works of roads and highways.
During the forecast period, it is expected that the revenue of roads and highways management and maintenance industry in Hong Kong will increase from around HK$1,657.7 million in 2018 to HK$1,711.3 million in 2022, at a CAGR of approximately 0.8%.