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JQW... as easy as ABC on AIM
Dec 09, 2013

JQW plc, (the Group or JQW) a leading domestic Chinese B2B eCommerce operator, today announces the commencement of dealings of its Ordinary Shares on the AIM market of the London Stock Exchange, having successfully raised £6.7 million on admission by way of a placing. The market capitalization at the placing price is £135 million. The Group’s core business is its online B2B platform, www.jqw.com, which has been developed to encourage domestic trade by connecting Chinese SMEs with potential trade partners. Founded in 2004, the platform helps market Chinese SME’s websites. JQW has evolved to become the second highest ranked B2B eCommerce website¹  and operates, what the director’s believe to be, the first dedicated B2B search engine, www.jqw.cn

The net proceeds of the placing, together with existing cash resources, will be used to strengthen JQW’s platform offering as a SME B2B eCommerce service provider in China. In order to enhance its overall services to existing users, the Group will initially invest in upgrading its hardware and servers, developing a mobile platform for iOS and Android, as well as establishing a financial and trading platform. The Group also plans to utilise some of the proceeds on expanding its marketing and advertising programme by increasing its own internal sales department, establishing a ‘Quasi-Franchise’ scheme to attract new sales agencies and building a bilingual eCommerce platform in English, to help attract international members and promote the Group’s fee paying members in China to a global market.

Yongde Cai, Chairman of JQW plc, said:
“The Chinese B2B eCommerce industry is rapidly growing, with reports forecasting transaction values on e-commerce platforms to experience double digit growth over the coming years. Against a backdrop of the increasing internet penetration in China and JQW’s already robust operating platform, the Board believes this additional funding will benefit the Group in expanding our operations and increasing brand awareness.

“JQW is in a strong position in this fast growing sector and the Board looks forward to working alongside our new shareholders to capitalise on the growth opportunities in the market.”

Crowe Clark Whitehill leading national audit, tax and advisory firm acted as reporting accountant to the transaction, with its capital markets team comprising Robin Stevens, Chulanga Jayawardana, Leonor Lee and Erin Yin.

Robin Stevens, partner at Crowe Clark Whitehill, said:
"We are delighted to have worked with the JQW team throughout the IPO process and to have helped them to achieve the next stage in their exciting expansion plans. We very much look forward to working together closely in the future and to supporting JQW as the business seeks to benefit from on the market opportunities that exist."

Wei Boon Kooi, Chief Financial Officer of JQW said:
“We were delighted by the support provided by the team at Crowe Clark Whitehill. They were an integral part of the process and delivered an exceptional service to support JQW on its admission to AIM”.

¹ AIM Admission document.