Country Garden, Agile Group and Poly
Developments and Holdings Group.
Hong Kong-listed Shimao Property is also
considering spinning off its property
management service unit in a Hong Kong
IPO to raise about US$500m–$600m this
year, IFR reported in January.TWO IPOs WIN FINAL APPROVALSHANDONG DONGYUE ORGANOSILICON MATERIALS
and HUNAN HESHUN PETROLEUM have won
lNALûAPPROVALûFROMûTHEû#HINAû3ECURITIESû
Regulatory Commission for A-share
listings.
Shandong Dongyue Organosilicon
Materials, a chemical products
manufacturer, plans to raise Rmb2.07bn
(US$294m) from a ChiNext listing of 300m
SHARES ûREPRESENTINGûAûûFREE
mOAT
Proceeds will be used for an organic
silicon processing project, to upgrade
production and build an R&D centre.
Its original target was Rmb4.5bn, of
which Rmb821m was to replenish working
capital, but the company cut out this part in
THEûLATESTû)0/ûlLING
China Securities is the sponsor.
Hunan Heshun Petroleum, a wholesaler
ANDûRETAILERûOFûRElNEDûOILûPRODUCTS ûAIMSûTOû
raise Rmb1.27bn from a Shanghai IPO. Cinda
Securities is the sponsor.SHANGHAI MOVES IPO CEREMONIES
ONLINEThree companies newly listed in Shanghai
had to move their IPO ceremonies online
last week because of the coronavirus crisis,
but that did not stop their shares from
ENJOYINGûTHEûCUSTOMARYûlRST
DAYûPOP
BESTORE, a snacks manufacturer
headquartered in Wuhan, the centre of the
outbreak, marked its debut on the Shanghai
Stock Exchange with a video broadcast on
February 24 that came complete with a
gong-striking animation.
4HEûlRST
OF
ITS
KINDûWEBûBROADCASTûWASûAû
way to maintain the sense of ritual for
company listings while in-person events are
restricted because of the epidemic, the SSE
said.
The exchange said that 13 companies that
were listed between February 4 and
February 21 without a celebration could
hold ceremonies, actual or virtual, after the
epidemic subsides.
In the video, the CEO of Bestore, the vice-
president of sponsor GF Securities and the
founder of venture capital investor Capital
Today exchanged introductions and
congratulations, as they would have in a
normal listing ceremony.
Coronavirus-related concerns were absent
when trading began, with Bestore sharesQUICKLYûHITTINGûTHEûûCAPûONûlRST
DAYûGAINSû
for newly listed stocks at Rmb17.14.
The company raised Rmb488m (US$69m)
at Rmb11.90 per share and had the retail
portion of its IPO 7,054 times covered.
BOC INTERNATIONAL (CHINA)‘s A-shares also hit
the 44% cap, surging to Rmb7.88 from the
IPO price of Rmb5.47 in morning trading on
their February 26 debut.
The company’s chairman and the
president of sponsor Guotai Junan Securities
starred in a celebratory online video
broadcast.
The Shanghai-registered bank raised
2MBBNûFROMûTHEûmOATûTOûREPLENISHû
working capital and for business expansion.
The bank is active in investment banking,
sales and trading, retail and brokerage, and
asset management.
Ping An Securities was joint bookrunner
with the sponsor.
On Shanghai’s tech-focused Star market,
CHINA RESOURCES MICROELECTRONICS‘ A-shares
soared 228% to Rmb42.01 on their February
ûDEBUT ûWHICHûMARKEDûTHEûlRSTûLISTINGûOFûAû
red chip, or overseas-domiciled company, in
China’s A-share market. Unlike on the main
board, there are no limits on price
MOVEMENTSûONûTHEû3TARûMARKETûINûTHEûlRSTû
lVEûTRADINGûDAYS
The semiconductor manufacturer raised
Rmb3.75bn from the sale of 293m A-shares
ATû2MBûEACHû)TûISûALSOûTHEûlRSTû)0/ûTOû
employ a greenshoe on the new board.
CICC is the sponsor and committed to buy
3% of the IPO.INDIA
PARK HOTELS DEFERS IPO TO SECOND
QUARTERAPEEJAY SURRENDRA PARK HOTELS has deferred
the launch of an IPO of up to Rs10bn
(US$140m) to the second quarter from
March, people with knowledge of the
transaction said.
The coronavirus outbreak and the
resulting weak outlook for the hospitality
sector have caused the delay.
The offer will comprise primary shares
for Rs4bn and Rs6bn of secondary shares.
Controlling shareholders Apeejay
Surrendra Trust, Apeejay House and Apeejay
Private are among the vendors.
Park Hotels is part of the Apeejay
Surrendra Group, which has interests in tea,
hospitality, shipping, real estate, retail and
lNANCIALûSERVICESû4HEûCOMPANYûRUNSûHOTELSû
under the brands “The Park” and “Zone by
The Park”
)NûTHEûlNANCIALûYEARûTOû-ARCHûû ûTHEû
company’s total income was Rs4.31bn
compared with Rs3.88bn in 2018. OperatingPROlTûROSEûTOû2SMûFROMû2SMûDURINGû
the same period.
Axis, JM Financial and ICICI Securities are the
banks on the transaction.ROSSARI BIOTECH EYES APRIL IPOChemical maker ROSSARI BIOTECH plans to
launch an IPO of up to Rs7bn (US$98m) in
April, having recently obtained Securities
and Exchange Board of India approval,
people with knowledge of the transaction
said.
Around Rs1.5bn of primary shares and
10.5m secondary shares will be sold.
Founders Edward Menezes and Sunil Chari
are the vendors of the shares. The company
is planning a pre-IPO placement of up to
Rs1bn and the primary tranche of the IPO
will be reduced accordingly if it is
completed.
The company was founded in 1997 and its
products include textile chemicals,
enzymes, polymers and animal healthcare
products.
2EVENUESûROSEûTOû2SBNûINûTHEûlNANCIALû
year to March 31 2019, up 73% from
2SBNûINûû.ETûPROlTûROSEûûTOû
Rs456.83m from Rs254.03m.
Axis and ICICI Securities are the lead
managers.SOUTH KOREA
BIG HIT HIRES FOUR FOR KRX IPOMusic group BIG HIT ENTERTAINMENT, which
manages K-pop stars such as BTS and TXT,
has hired four banks to work on its planned
KRX IPO targeted for the second half of this
year, people with knowledge of the matter
said.
JP Morgan, Korea Investment & Securities and
NH Investment & Securities are the joint lead
bookrunners and Mirae Asset Daewoo is the
lead manager. IFR reported earlier that
Citigroup had also applied for a role in the
IPO, but its bid was not successful.
Local media have reported analysts as
saying that Big Hit is poised to pull off one of
the biggest IPOs of the year with an
estimated valuation of between W2trn and
W4trn (US$1.65bn–$3.3bn).
Founder and executive producer Bang Si-
hyuk is the company’s largest shareholder
with a 43% stake. Its other major
shareholders are gaming company
Netmarble, the second biggest investor after
it bought a 25.7% stake in 2018 for
7BN ûANDûVENTUREûCAPITALûlRMû34)#û
Investment.
Big Hit, founded in 2005, posted revenues
OFû7BNûANDûAûNETûPROlTûOFû7BNûFORû
2018, according to its website.76 International Financing Review February 29 202010 IFR Equities and SE 2322 p 73 - 86 .indd 76 28 / 02 / 2020 19 : 13 : 56