COUNTRY REPORT CHINAEstate said it expects to own not less than
50% of Powerlong Management after the IPO.
› SAMOYED WITHDRAWS US IPO FILING
SAMOYED HOLDING has filed to the US Securities
and Exchange Commission to withdraw
its planned IPO of US$80m because of
unfavourable market conditions.
The company, which operates an online
lending service in China for credit card
balance transfers, filed its application last
September.
Samoyed posted a net profit of
Rmb25.6m for the first half of 2018, versus
a net loss of Rmb48bn a year earlier.
Co-founders Jianming Lin and Debin
Tang currently own a combined 46.6% stake
in the company.
CICC, Deutsche Bank and Morgan Stanley
were leading the transaction.
› SDIC POWER GDR WINS APPROVAL
Shanghai-listed SDIC POWER HOLDINGS has
won approval from the State-owned
Assets Supervision and Administration
Commission for a planned sale of global
depositary receipts in London.
The Chinese power generation company
plans to sell up to 10% of its outstanding
share capital or not more than 678.6m
A-shares in the form of GDRs.
The plan still needs approval from
shareholders as well as British and Chinese
securities regulators.
In December 2018, IFR first reported that
SDIC Power was planning to sell GDRs in
London to raise about US$500m–$700m.
Goldman Sachs, HSBC and UBS are leading the
transaction.
As of August 15, SDIC Power had a
market capitalisation of Rmb61bn. Selling a
10% stake in theory will put the deal size at
around US$870m.
However, given the valuation difference in
the A-share and London markets, the GDRs
will be priced at a discount to the A-shares.
In June, Huatai Securities, the first Chinese
company to sell GDRs in London through
the Shanghai-London Stock Connect scheme,
saw its GDRs priced at a 26% discount to its
A-shares. The Chinese securities house raised
US$1.69bn from the offer.
› SICHUAN KELUN PLANS RIGHTS ISSUE
Shenzhen-listed SICHUAN KELUN
PHARMACEUTICAL’s plan to launch a Rmb2bn
rights issue is set to be reviewed by the
China Securities Regulatory Commission.
The company plans to offer up to 200m
shares on a 1.4-for-10 basis.
Proceeds will be used to repay interest-
bearing debt and replenish working capital.
The company posted net profits of
Rmb362m and Rmb1.27bn in the first
quarters of 2019 and 2018 on revenues of
Rmb4.28bn and Rmb16.4bn.
Its A-shares closed at Rmb30.65 on
August 19, down 1.4%.› YANZHOU COAL DROPS PLACEMENTHong Kong and Shanghai-listed YANZHOU
COAL MINING has filed to the China Securities
Regulatory Commission to withdraw a
Rmb7bn private placement.
The company said in an announcement it
wanted to protect the interests of investors
as capital market conditions, financing
opportunities and other factors had changed.
The company planned to fund the
acquisition of all the shares in Coal & Allied
Industries, an Australian coal products
manufacturer, by offering up to 647m
shares in the placement.
The CSRC agreed to review the
placement proposal in December 2017.
The company’s A-shares closed at
Rmb9.22 on August 16, while its H-shares
were at HK$6.25.
Zhong De Securities was the sponsor.› YONGXIONG MULLS US IPOHUNAN YONGXIONG ASSET MANAGEMENT, a debt
collection company in China, is mulling
a US listing next year to raise US$100m–
$200m, said people close to the deal.
The company is in early discussion with
advisers for the listing, said the people.
Founded in 2014, YongXiong collects
delinquent credit card payments and
personal loan payments for financial
institutions. It operates in about 30 cities
in China.
The company kicked off preparations
at the end of 2015 for a listing on The
National Equities Exchange and Quotations,
China’s over-the-counter market, but the
deal did not materialise.
It is estimated that there are about 3,000
registered debt collection companies in
China, with a total of 300,000 employees.› ZTE CLEARS HEARING FOR PLACEMENTTelecom equipment maker ZTE cleared a
hearing at the China Securities Regulatory
Commission on August 22 for a Rmb13bn
private placement.
The Shenzhen and Hong Kong-listed
company applied last April to place up to
687m A-shares at a floor price of Rmb30
each, before scrapping the floor price after
its shares dropped sharply last year, hitting
a 52-week low of Rmb14.50 on October 12.
It closed at Rmb29.24 on August 23, up 49%
year to date.The price of the placement will be set on
the first day of the offering.
Proceeds will be used for research and
development related to 5G networks and
for working capital.
China Securities is the sponsor.
The company is still waiting for final
written approval from the CSRC.› CHONGQING CONSTRUCTION AIMS LOWERShanghai-listed CHONGQING CONSTRUCTION
ENGINEERING GROUP has reduced the
fundraising target of a proposed six-year
convertible bond to Rmb1.66bn from
Rmb2.2bn.
The company planned to use the
proceeds for four infrastructure
construction projects in Chongqing city
and to replenish working capital, but it has
dropped one of the projects.
The company posted a 2018 net profit of
Rmb447m on revenue of Rmb46.7bn.
Its A-shares were down 0.9% at Rmb4.63
on August 21.
It is still awaiting regulatory approval of
the CB after the China Securities Regulatory
Commission agreed to review the plan in
March.› FUJIAN LONGKING EYES RMB2BN CBShanghai-listed FUJIAN LONGKING plans to raise
Rmb2bn from a six-year convertible bond.
Proceeds will be used for four
environmental protection and waste disposal
projects, and to replenish working capital.
The environmental protection company
posted net profit of Rmb283m and
Rmb805m on revenues of Rmb4.4bn and
Rmb9.4bn in H1 2019 and full-year 2018,
respectively.
Shareholders will vote for the CB on
August 29.› HONGDA XINGYE CLEARS CB HEARINGShenzhen-listed HONGDA XINGYE has cleared
a China Securities Regulatory Commission
hearing for a Rmb2.45bn six-year
convertible bond.
The chemicals company will use the
proceeds for a new PVC project and to
replenish working capital.
The company’s A-shares were up 0.43% to
Rmb4.64 on August 23.
First Capital Investment Banking is the sponsor.› PUDONG DEVELOPMENT BANK PLANS CBShanghai-listed SHANGHAI PUDONG DEVELOPMENT
BANK has cleared a hearing at the China
Securities Regulatory Commission for a
Rmb50bn six-year convertible bond.
If the deal comes to fruition it will be the