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Hywin Holdings Seeks $46 Million U.S. IPO

Mar. 04, 2021 2:28 PM ETHywin Holdings Ltd. (HYW)


  • Hywin Holdings has filed to raise $46 million in a U.S. IPO.
  • The firm provides various wealth management services to individuals in China and overseas.
  • HYW has grown topline revenue moderately and produces net profits and free cash flow.
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Quick Take

Hywin Holdings (NASDAQ:HYW) has filed to raise $46 million in an IPO of its ADSs representing underlying ordinary shares, according to an F-1 registration statement.

The firm provides wealth management services in China and overseas.

HYW has produced positive earnings and free cash flow on moderate topline revenue growth.

I’ll provide an update when we learn more about the IPO from management.

Company & Technology

Shanghai, China-based Hywin was founded to offer a range of financial services to clients via its team of 1,700 relationship managers.

Management is headed by founder and Chairman Mr. Hongwei HAN, who was previously Chairman at the Henan Yizhong (Group).

Below is a brief overview video of Hywin:

Source: Hywin Wealth

The company’s primary offerings include:

  • Wealth Management

  • Insurance Brokerage

  • Asset Management

  • Other Services

Hywin has received at least $70 million from investors including Grand Lead Group Limited (Chairman HAN) and Vigor Advance Limited.

Client Acquisition

The firm pursues clients through its large network of relationship manager personnel.

The firm's network is the third largest in China and is administered from 167 wealth service centers in 84 cities across 25 provinces and municipalities in China.

For the year ended June 30, 2020, the transaction value per relationship manager averaged $5.6 million, ranking the firm the second highest, according to a report by CIC referenced by management.

Sales and Marketing expenses as a percentage of total revenue have dropped as revenues have increased, as the figures below indicate:

Sales and Marketing

Expenses vs. Revenue



FYE June 30, 2020


FYE June 30, 2019


Source: Company registration statement

The Sales and Marketing efficiency rate, defined as how many dollars of additional new revenue are generated by each dollar of Sales and Marketing spend, was 0.4x in the most recent

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This article was written by

Donovan Jones profile picture

I'm the founder of IPO Edge on Seeking Alpha, a research service for investors interested in IPOs on US markets. Subscribers receive access to my proprietary research, valuation, data, commentary, opinions, and chat on U.S. IPOs. Join now to get an insider's 'edge' on new issues coming to market, both before and after the IPO. Start with a 14-day Free Trial.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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