Worldstar Engineering Holdings Limited, a Hong Kong-based contractor specializing in repair, maintenance, alteration, addition (RMAA) and painting works, filed for a U.S. IPO. The company plans to offer 5,000,000 Class A Ordinary Shares at an expected price range of $5.00 to $6.00 per share and list on the Nasdaq Capital Market. Stratosphere Capital, LLC is the representative underwriter, and the company intends to use proceeds for acquisitions, equipment, hiring, and working capital.

Business Description

Worldstar Engineering is a Hong Kong-based contractor that focuses on repair, maintenance, alteration and addition (RMAA) and painting works. Operating through its subsidiary Worldstar Engineering Limited (WEHK), the company primarily serves public sector projects and also undertakes selective private sector jobs. Its services range from renovation and structural repair to interior fitting-out and large-scale painting, and the company is registered under Hong Kong’s Registered Specialist Trade Contractors Scheme.

The company emphasizes project supervision, quality control, and cost management, and is investing in advanced painting equipment and robotics to improve efficiency, safety, and sustainability. Revenue is largely generated on a project-by-project basis, with significant concentration from one major customer that accounted for 93.7% of revenue in FY2025. Worldstar cites strengths in experienced leadership, operational track record, and positioning within public-sector maintenance cycles.

Market Overview

  • Total addressable market: Hong Kong construction gross value reached about HK$439.2 billion in 2023.
  • Market growth: Public sector construction by main contractors grew at ~9.75% CAGR (2019–2024).
  • Market position: Subcontractor focused on public-sector RMAA and painting projects in Hong Kong.
  • Key competitors: Numerous small- and mid-sized subcontractors and specialist contractors in Hong Kong.
  • Industry trends: Aging building stock, government housing and renewal programs, adoption of BIM and automation, and steady maintenance demand.

Operational Metrics

  • Customers: One Major Customer accounted for ~93.7% of FY2025 revenue (82.0% in FY2024).
  • Locations: Headquarters and operations in Hong Kong.
  • Geographic presence: Projects conducted exclusively in Hong Kong.
  • Partnerships/Qualifications: Registered Specialist Trade Contractor (building maintenance, interior fitting-out, painting); on Hong Kong Housing Authority’s Decoration Contractors list.
  • Backlog/Remaining performance obligations: ~HK$512.9 million as of March 31, 2025; ~HK$682.3 million as of September 30, 2025.
  • Workforce: 29 employees as of March 31, 2025; 13 as of 2026.
  • Project mix: FY2024 included 4 RMAA and 11 painting contracts; FY2025 included 3 RMAA and 4 painting contracts.
  • Technology: Deployment plans for painting robots and advanced machinery to enhance quality, speed, and safety.

Financials Highlights

  • Revenue (current): FY2025: HK$200,736,535 (US$25.64 million)
  • Revenue growth: Up ~123.2% year-over-year (FY2025 vs. FY2024)
  • Gross profit: FY2025: HK$23,381,447 (US$2.99 million) (11.6% margin)
  • Operating income: FY2025: HK$13,111,468 (US$1.71 million)
  • Net income: FY2025: HK$8,693,648 (US$1.15 million)

Management

  • Man Fai Lee, Chairman and Chief Executive Officer - Over 30 years in construction management; director of WEHK since 2008; leads strategy, business development, and key client relationships.
  • Ming Fung Choi, Chief Financial Officer - CPA with 10+ years’ experience in audit and corporate finance; previously at Deloitte; oversees financial reporting, internal controls, and capital planning.
  • Sham Tsz Leung, Independent Director (Audit Chair) - Practicing member of HKICPA; director at a CPA firm; 12+ years in audit and advisory.
  • Ka Kit Ho, Independent Director - Registered structural engineer with ~30 years’ experience in civil/structural design and project management.
  • Yiu Wing Chan, Independent Director - Registered professional engineer with 25+ years in building and engineering; leadership roles at Hong Kong contractors.

IPO Structure

  • Issuer: Worldstar Engineering Holdings Limited
  • Filing date: June 30, 2026
  • Exchange: Nasdaq Capital Market
  • Price range: $5.00 to $6.00 per share
  • Offering size: $27.5 million (at midpoint before any over-allotment)
  • Shares offered: 5,000,000 Class A Ordinary Shares
  • Lead underwriters: Stratosphere Capital, LLC (representative)
  • Use of proceeds: ~40% acquisitions of building services providers; ~30% procurement of painting equipment/advanced machinery; ~20% recruitment of skilled professionals; remainder for general administration and working capital

Original SEC Filing:

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