32 International Financing Review Asia April 4 2020business such as stock pledge and margin
trading, the IBD business, IT systems,
and to set up a subsidiary overseas and
replenish working capital.
The company completed a Rmb1.26bn
IPO last July. Soochow Securities was the
sponsor.
It posted a 2019 net profit of Rmb838m,
more than double the previous year’s profit,
on revenue of Rmb2.07bn, a 71.9% increase.› JUNSHI BIO CLEARS STAR IPO HEARINGHong Kong-listed SHANGHAI JUNSHI BIOSCIENCES
has cleared a Shanghai Stock Exchange
hearing for a proposed Rmb2.7bn Star IPO.
The company plans to offer up to 87.1m
A-shares, or a 10% free float. There is a 15%
greenshoe.
Proceeds will be used for R&D, to build a
production base, repay bank loans and for
working capital.
Junshi raised HK$3.08bn (US$393m) from
a Hong Kong IPO in December 2018.
It still needs approval from the China
Securities Regulatory Commission for its
Star IPO registration.
CICC is the sponsor, and bookrunner with
Guotai Junan and Haitong Securities.› KANGJI MEDICAL CHOOSES HONG KONGChinese medical equipment maker KANGJI
MEDICAL is planning to raise about US$300m–
$500m from a Hong Kong IPO this year,
said people close to the deal.
The company filed a listing application
on March 27 with Bank of America, CLSA and
Goldman Sachs as sponsors. No fundraising
size or timetable is mentioned in the filing.
The deal could hit the market in the
second quarter if market conditions allow,
said the people.
Kangji, which makes equipment for
minimally invasive surgery, posted a net
profit of Rmb327m (US$46m) for 2019, up
46% from 2018.
Founded in 2004, Kangji filed a listing
application for an A-share IPO in June 2019
but withdrew it because of the prolonged
and uncertain timetable of the vetting
process for an A-share listing, and to gain
international recognition with a Hong Kong
listing, according to the filing.› LEPU MEDICAL EYES PLACEMENTChiNext-listed LEPU MEDICAL TECHNOLOGY (BEIJING)
plans to raise Rmb3.18bn from a proposed
private A-share placement.
The company will sell up to 104.6m
shares, or 5.9% of its existing shares,
to seven strategic investors including
state-owned China Reform Holdings and
Shenzhen Capital Group, owned by theShenzhen bureau of the State-owned
Assets Supervision and Administration
Commission, and Hong Kong-registered
Cephei QFII China Total Return Fund.
All the strategic investors have been
designated and the issue price has been
set at Rmb30.41 per share, a 22% discount
to the closing price of Rmb39.47 on
March 30.
Proceeds will be used to replenish
working capital and repay debt.
The company posted a 2019 net profit of
Rmb1.73bn, a 41.6% increase year on year.› LOHA PLANS US$30M NASDAQ IPOLOHA, an organic food distributor in China,
is planning a Nasdaq IPO of up to US$30m.
The Shenzhen-based company is offering
4.3m shares in an indicative price range of
US$5.00–$7.00 each.
Loha, which was founded in 2013,
provides customers food products ranging
from fruit to green vegetables and eggs,
as well as dry goods through traditional
wholesale channels and vending machines.
It posted net income of US$8.7m for the
12 months ended September 30 2019, down
1% from the same period the year before.
The company said the coronavirus
pandemic has adversely affected its
business because restrictions on travel and
gatherings have delayed procurement and
delivery services.
Proceeds will be used for business
expansion, marketing and promotion and
general corporate purposes.
Maxim Group, Tiger Brokers, Valuable
Capital and Prime Number Capital are the
underwriters.› NEW HOPE LIUHE PLANS PLACEMENTShenzhen-listed NEW HOPE LIUHE plans to raise
Rmb4bn from a proposed private A-share
placement for 14 pig breeding projects.
It will sell up to 176m shares, or 4.2% of
existing shares, to New Hope Group and its
related party Southern New Hope, which
have committed to buy 79.2m and 96.8m
shares respectively.
New Hope Group is the biggest
shareholder in the company with a 54.1%
stake held directly and indirectly.
The proceeds will also be used to
replenish working capital.
New Hope Liuhe completed a Rmb4bn
six-year convertible bond offering in
January to fund eight pig breeding projects.
It posted a 2019 net profit of Rmb5.04bn,
a 196% increase year on year, on revenue of
Rmb82.1bn.
The company estimated in its annual
report that pork prices will continue to rise
in 2020 as supply will be tighter.› NJCG TO KICK OFF SHANGHAI IPONINGBO JINTIAN COPPER (GROUP) is conducting
price consultation from April 3–7 for its
Rmb1.59bn Shanghai IPO.
It will price the deal on April 8 and books
will open for a day on April 10.
The copper processing manufacturer
plans to offer 242m A-shares, or 10% of its
enlarged capital. Its original target was to
raise Rmb2.36bn by selling 400m shares.
It will use the proceeds on four copper
processing projects, to upgrade production
lines, and repay loans from banks, which
will cost Rmb2.36bn.
Caitong Securities is the sponsor.› NSI TO KICK OFF STAR IPONATIONAL SILICON INDUSTRY GROUP will price its
proposed Rmb2.5bn Shanghai Star IPO on
April 7 and books will open for a day on
April 9.
The company said in an updated
prospectus that the coronavirus outbreak
has not yet had a significant adverse impact
on its operations.
The semiconductor-wafer manufacturer
plans to offer 620m A-shares or not less
than 25% of its enlarged capital.
Proceeds will be used to expand the
production capacity of 300mm silicon
wafers for integrated circuits and to
replenish working capital.
Shanghai Guosheng Group and the
National Integrated Circuit Industry
Investment Fund are the largest
shareholders of the company with 30.48%
each. Guosheng Group is 100%-owned
by the State-owned Assets Supervision
and Administration Commission of the
Shanghai Municipal Government, and
NICIIF’s largest shareholder is the Ministry
of Finance.
The company posted revenue of
Rmb1.07bn and a net loss of Rmb53.5m for
the first nine months of 2019.
Haitong Securities is the sponsor.› PEIJIA TO SEEK APPROVALPEIJIA MEDICAL is aiming to seek listing
approval in the second half of April for a
Hong Kong IPO of about US$200m, said
people close to the deal.
The medical devices maker is planning
to wrap up the deal in May if market
conditions allow, said the people. Huatai
International and Morgan Stanley are the
sponsors.
The pharmaceutical sector is one of
the few industries to benefit from the
coronavirus pandemic, with IPOs and
follow-on offerings still being done despite
choppy market conditions.B&RXQWU\LQGG