listing on June 6 as part of a wider review of
small business loan terms. Prospa decided to
defer its listing to engage with the regulator
and other stakeholders.
CHINA
HANSOH PHARMA PRICES IPO AT TOPHANSOH PHARMACEUTICAL GROUP has raised
HK$7.86bn (US$1bn) from a Hong Kong IPO
priced at the top of the indicative price
range.
The Chinese drugmaker sold 551m
primary shares, or 9.7% of the enlarged
share capital, at the top of the HK$13.06–
ûRANGEû4HEûlNALûPRICEûREPRESENTSûAû
2019 P/E of 27.5.
The deal attracted nine cornerstone
investors for a total investment of about
US$344m.
The book was multiple times covered.
About 180 investors participated with a mix
of long-only, hedge funds and Chinese
money. Allocation was heavily skewed
towards the top 10 long-only investors.
The shares are due to start trading on June 14.
Citigroup and Morgan Stanley were
sponsors, and global coordinators with China
Merchants Securities, Goldman Sachs and UBS.
4HEûlVEûBANKSûWEREûALSOûBOOKRUNNERSûWITHû
CICC.CHINA EAST SEALS RECORD IPOCHINA EAST EDUCATION has raised HK$4.9bn
(US$625m) from a Hong Kong IPO that waspriced within the upper half of the
indicative price range.
The vocational training company sold
435.8m primary shares, or 20% of its
enlarged share capital, at HK$11.25 each
compared with an indicative range of
HK$9.80–$12.26 per share.
4HEûlNALûPRICEûREPRESENTSûAûû0%ûOFû
4HEûmOATûHASûSURPASSEDûTHEû53Mû53û
listing of US education services provider
Laureate Education in 2017 as the biggest
IPO from the sector.
Anatole Investment Management is the
cornerstone investor in East Education,
investing about US$35m.
The books were multiple times covered,
with strong participation from global long-
only investors, sovereign wealth funds, hedge
funds and high net-worth investors.EQUITIES ASIA-PACIFICThree pass first tech board hearing
CHINA First listings on new Shanghai board could come within a monthThree companies passed the Shanghai tech
board’s first listing hearing last week, potentially
paving the way for the first batch of IPOs on the
Nasdaq-style board within a month.
According to the Shanghai Stock Exchange,
SUZHOU TZTEK TECHNOLOGY, SHENZHEN CHIPSCREEN
BIOSCIENCES and ANJI MICROELECTRONICS
TECHNOLOGY (SHANGHAI) won approval last
Wednesday for IPOs that are set to raise a
combined Rmb2.1bn (US$304m).
TZTEK Technology, which makes imaging-
based sensors and measuring devices, plans to
raise Rmb1bn. Chipscreen Biosciences, a drug
developer, and Anji Microelectronics, which
supplies advanced electronic components, intend
to raise Rmb804m and Rmb303m, respectively.
Once a company gains approval from the
SSE’s listing committee, the China Securities
Regulatory Commission has 20 working days todecide whether to approve the IPO registration.
This means that the first successful applicants
could bring their IPOs to market in early July.
The listing committee is scheduled to hold
three more hearings on June 11, 13 and 17 to vet
the applications of eight other listing candidates
(see table).
At last week’s hearing, the three issuers
faced more than 20 questions from the listing
committee.
The main focus was on their core
technologies, the possibility of losses in
the future, the sustainability of their main
customers, and whether it is fair to count
excessive depreciation and amortisation
expenses as research and development costs. To
qualify for a tech board listing, issuers must have
allotted 15% of total revenues to research and
development in the previous three years.TZTEK Technology, for example, was asked
by the committee why it had not used its
proprietary vision sensor technology in the past
few years, even though it had referred to it as
its “core technology” in the IPO filing. It also
queried why the company described itself as
being in the machine vision technology sector,
while listing comparables in special equipment
manufacturing.
The SSE began accepting listing applications
in March for the tech board. As of June 5, 119
companies had applied to raise a combined
Rmb112bn.
Haitong Securities is the sponsor on TZTEK
Technology, while Essence Securities and
Shenwan Hongyuan Financing Services are
working on the Chipscreen Biosciences and Anji
Microelectronics offerings, respectively.
Karen Tian, Fiona LauTHREE PASS FIRST TECH BOARD HEARING
Fundraising
Issuer Sector target (Rmb m) Sponsor Filing date Hearing
Suzhou TZTEK Technology Precision manufacturing equipment 1,000 Haitong Securities 02/04/2019 6/6/2019 Passed
Shenzhen Chipscreen Biosciences Biotech drugs 804 Essence Securities 27/03/2019 6/6/2019 Passed
Anji Microelectronics Technology (Shanghai) Electronic components 303 Shenwan Hongyuan 29/03/2019 6/6/2019 Passed
Fujian Forecam Optics Optical lenses and systems 651 Industrial Securities 28/03/2019 11/06/2019
Yantai Raytron Technology Thermal imaging, sensors 450 Citic Securities 22/03/2019 11/06/2019
Suzhou HYC Technology Testing equipment for touchscreens 1,009 Huatai United Secs 27/03/2019 11/06/2019
and other products
Beijing Tianyishangjia New Material Rail, marine, aerospace and 646 China Securities 12/04/2019 13/06/2019
transportation components
Zhejiang HangKe Technology Battery testing equipment 547 Guosen Securities 15/04/2019 13/06/2019
Montage Technology Electronic components 2,300 Citic Securities 01/04/2019 13/06/2019
Micro-Tech (Nanjing) Electronic components 894 Nanjing Securities 03/04/2019 17/06/2019
Traffic Control Technology Rail, marine, aerospace and 550 CICC 29/03/2019 17/06/2019
transportation components
Source: IFR Asia