International Financing Review Asia April 4 2020 33COUNTRY REPORT HONG KONGPeijia posted a loss of Rmb242m
(US$35m) for the nine months ended
September 30 2019, compared to a loss of
Rmb51m over the same period in 2018.
Hillhouse Capital owns a 9.33% stake in
the company.› PINDUODUO CONDUCTS PLACEMENTChinese e-commerce company PINDUODUO
announced last Tuesday it had raised
US$1.1bn from a private share placement.
The shares, representing about 2.8% of
the company’s total outstanding shares,
were sold to certain long-term investors
despite the volatile market conditions.
Pinduoduo shares on Nasdaq edged up
0.9% to US$35.63 last Monday. As of last
Monday, the stock was down 0.4% in the
past month compared with a 20% drop in
the Nasdaq Composite.
The transaction is expected to be closed
in early April.› SHANXI SEC RIGHTS ISSUE APPROVEDShenzhen-listed SHANXI SECURITIES has cleared
a hearing on a proposed Rmb6bn rights
issue at the China Securities Regulatory
Commission.
The brokerage will sell 849m shares on a
3-for-10 basis.
It will use the proceeds to expand its
capital intermediary, fixed income and bill
investment businesses and to increase the
capital of a subsidiary.
The company posted 2019 revenue of
Rmb5.08bn, a 26% decrease year on year. It
has a 66.7% stake in its Zhong De Securities
JV with Deutsche Bank.
Citic Securities is the sponsor.› SUNKWAN PROPERTIES PLANS IPOSUNKWAN PROPERTIES is planning to raise about
US$100m from a Hong Kong IPO this year,
said people close to the deal.
The Chinese property developer filed a
listing application last Monday with ABC
International as sponsor. No fundraising size
or timetable was mentioned in the filing.
The deal could hit the market as soon as
the second quarter, said the people.
Sunkwan posted net profit of Rmb677m
for 2019, almost flat from the Rmb673m in
2018.
As of February 29, Sunkwan had a
property portfolio of 43 projects with a
total land bank of about 3.6 million square
metres.› VIVA TRIMS LI NING STAKEGEM-listed Viva China has raised HK$1.5bn
(US$194m) from the sale of part of its stakein Chinese sportswear company LI NING
through a block trade.
The deal, comprising 70m shares or
2.85% of the total outstanding, was priced
at the top of a HK$20.95–$21.52 range or
at a 5% discount to the company’s close of
HK$22.65 last Tuesday.
The books were heavily oversubscribed
with strong support from global long-only
investors, existing shareholders, sovereign
wealth funds and hedge funds. The top five
investors took close to 80% of the deal.
There is a 180-day lock-up on the seller.
HSBC was the bookrunner.› WESTERN SEC PLANS PLACEMENTShenzhen-listed WESTERN SECURITIES plans to
raise Rmb7.5bn from a proposed private
A-share placement.
The brokerage will sell up to 1.05bn shares
to 35 investors including provincial-owned
Shaanxi Investment Group, the biggest
shareholder in the company, which has
committed to buy 37.2%–50% of the offering
that will be locked up for 60 months.
Proceeds will be used for fixed income,
investment, stock pledges and margin
trading, for its IT service and risk
control system, to top up capital for four
subsidiaries, upgrade physical outlets, repay
debt, and replenish working capital.
The company posted a net profit of
Rmb3.1bn for 2019, a 204% increase year on
year, on revenue of Rmb3.68bn, up 64.5%.› WIMI HOLOGRAM COMPLETES IPOWIMI HOLOGRAM CLOUD has raised US$26m from
a downsized Nasdaq IPO.
The company, which delayed the Nasdaq
IPO in July last year, originally planned to
sell 5m ADSs in an indicative price range of
US$5.50–$7.50 each. Eventually 4.75m ADSs
were sold at the bottom of the range.
WiMi provides augmented reality-based
holographic services and products in China.
The company posted a net profit of
Rmb79m (US$11m) for the first half of
2019, up 56% year-on-year.
It plans to use the proceeds for research
and development, strategic acquisitions and
investments and other general corporate
purposes.
Benchmark Company, Valuable Capital,
Maxim, China Merchants Securities (HK),
AMTD, BOC International and Axiom Capital
Management led the transaction.› WUHU SANQI READIES PLACEMENTShenzhen-listed WUHU SANQI INTERACTIVE
ENTERTAINMENT NETWORK TECHNOLOGY GROUP
has released a Rmb4.5bn private A-share
placement proposal.The company plans to offer up to 106m
shares, or 5% of the existing shares, to up to
35 investors.
Proceeds will be used for online game
development and operations, to develop
5G cloud gaming platforms and build a
headquarter in Guangzhou.
The company posted a net profit of
Rmb2.12bn in 2019, doubled the 2018
record, on revenue of Rmb13.2bn, a 73.3%
increase year on year.› WUXI BIOLOGICS BLOCK UPSIZEDWuXi Biologics Holdings has raised
HK$4.6bn from an upsized sell-down in WUXI
BIOLOGICS (CAYMAN).
The deal, which was upsized from 41m
to 48m shares, was priced at HK$96.80 per
share compared to the HK$95–$97 range.
The final price represents a discount of
3.7% to the company’s close of HK$100.50
last Tuesday.
The books were multiple times
oversubscribed with significant support
from global long-only investors and
existing shareholders. There were more
than 90 investors in the books and
allocation was heavily scaled back and
concentrated. The top 10 investors took
about 75% of the deal and the top 20
about 90%.
There is a three-month lock-up.
After the sale, WuXi Biologics Holdings
remains the controlling shareholder in
WuXi Biologics (Cayman) with a 31.7%
stake.
Morgan Stanley was the sole bookrunner.HONG KONG
DEBT CAPITAL MARKETS
› CHINA STRATEGIC TAKES LOSS ON LOGANCHINA STRATEGIC HOLDINGS expects to take a loss
of about US$231,000 on a recent disposal
of part of its holdings in Logan Property
Holdings’ US dollar bonds, according to a
stock exchange filing.
The Hong Kong-listed investment
holding company on April 2 sold US$2m of
Logan’s 5.25% February 23 2023 notes and
US$1m of its 6.50% July 16 2023 notes in
the secondary market for US$2.790m and
US$952,000, respectively.
In light of volatile market conditions,
the company said the disposal can “provide
immediate liquidity to improve its cash
positions” and “reduce its exposure to
financial market fluctuations”.B&RXQWU\LQGG