ASIA-PACIFIC
CHINA
YANGTZE POWER PLANS GDRShanghai-listed CHINA YANGTZE POWER has
invited banks to pitch for a role in its
potential sale of global depositary receipts
in London through the Shanghai-London
Stock Connect trading link, according to
people close to the deal.
The hydropower generator may sell up to
10% of the company, as has been the case with
GDR offerings from other Chinese companies,
but nothing has been decided as yet.
Yangtze Power’s A-shares closed at
Rmb17.72 last Thursday, giving it a market
capitalisation of Rmb390bn (US$56.3bn).
Selling a 10% stake would put the deal size
at about US$5.6bn.
The deal could come as early as this year.
Last June, Huatai Securities raised
US$1.7bn from the landmark sale of GDRs
in London that marked the launch of the
long-awaited trading link between Shanghai
and London.
Several Chinese companies have similar
plans. Shanghai-listed SDIC Power is looking
ATûAû53MnMûmOATûANDû3HANGHAIûANDû
(ONGû+ONG
LISTEDû#HINAû0ACIlCû)NSURANCEû
(Group) Co is planning a US$3bn offering.
In January, it was reported that China had
temporarily blocked planned cross-border
listings between the Shanghai and London
stock exchanges because of political tensions
with the UK. The China Securities Regulatory
Commission subsequently denied the news,
saying media reports did not match facts and
the link had been operating normally.
Founded in 2002, Yangtze Power operates
four large hydropower stations including
the Three Gorges along the Yangtze River. It
is also engaged in hydropower businesses in
countries including Germany, Portugal,
Brazil and Malaysia.
China Three Gorges Corporation is
Yangtze Power’s controlling shareholder
with a 62% stake.TIANFENG, INSPUR PRICE RIGHTS ISSUESShanghai-listed TIANFENG SECURITIES has set
the issue price at Rmb3.60 per share for a
Rmb8bn (US$1.5bn) rights issue. It will sell
up to 1.55bn rights shares on a 3-for-10 basis
on March 10.
Proceeds will be used to fund a subsidiary,
expand the asset management and
securities investment businesses, increase
investment in research, build an IT system,
and for working capital.The broker’s A-shares were down 4.3% at
Rmb7.30 last Friday morning.
Industrial Securities is the sponsor and joint
booker with East Asia Qianhai Securities.
INSPUR ELECTRONIC INFORMATION INDUSTRY has
set the issue price at Rmb12.92 per share for
a Rmb2bn rights issue.
The data centre and cloud computing
provider will offer up to 155m rights shares
on a 1.2-for-10 basis on March 10, down
from the originally planned 322m rights
shares on a 2.5-for-10 basis.
Inspur Group, the company’s largest
shareholder, and its Shanghai-listed Inspur
Software subsidiary have committed to
subscribe to their full entitlement under the
rights issue. Inspur Group holds a 37.1%
stake in the company.
Proceeds will be used to repay bank loans
and replenish working capital.
The company’s A-shares were down 1.1%
at Rmb43.69 on Friday afternoon.
China Galaxy Securities is the sponsor.GUOSEN AMENDS US$2.15bn
PRIVATE PLACEMENTShenzhen-listed GUOSEN SECURITIES has
amended the terms of its Rmb15bn
(US$2.15bn) private placement. It will sell
1.64bn shares to up to 35 investors, revised
from 10 investors.
Shenzhen Investment Holdings, Yunnan
Hehe (Group) and China Resources SZITIC
Trust have committed to buy 33.5%, 16.8%
and 1% of the placement, respectively. The
three investors will face a lock-up period of
36–60 months, and any remaining potential
investors will have a lock-up of up to six
months.
4HEûmOORûPRICEûWILLûBEûûOFûTHEû
DAYû
average before pricing day, down from 90%.
Proceeds will be used to replenish capital
and working capital and repay debt.
China Galaxy Securities is the sponsor and
joint bookrunner with GF Securities and
Hongta Securities.CICC SEEKS SHANGHAI IPO
Hong Kong-listed CHINA INTERNATIONAL CAPITAL
CORPORATION is seeking shareholder approval for
a proposed Shanghai IPO. It plans to offer up to
Mû!
SHARES ûREPRESENTINGûAûûFREE
mOAT
CICC’s H-shares rose by 5.8% to HK$15.22
last Monday. Based on that, the company
could raise some US$898m from the listing.
Proceeds will be used to replenish
working capital.
4HEûBROKERAGEûPOSTEDûAûNETûPROlTûOFû
2MBBNûFORûTHEûlRSTûNINEûMONTHSûINû
2019, a 15% increase year-on-year, on
revenues of Rmb11.2bn.
CICC raised HK$6.3bn (US$808m) from
THEû(ONGû+ONGûmOATûINû
Shareholders will vote on April 14.AI UNICORN BEGINS IPO TUTORIALAI chipmaker CAMBRICON TECHNOLOGIES has
begun a Shanghai Star market IPO tutorial
with Citic Securities.
The company, a spin-off from the
Institute of Computing Technology of the
Chinese Academy of Sciences, was included
last year in CB Insights’ list of Chinese AI
unicorns valued at about US$2.5bn.
Cambricon aims to build core processor
chips for intelligent cloud servers, smart
terminals and intelligent robots.
4HEûCOMPANYûHASûHADûlVEûFUNDRAISINGû
rounds since it was founded in 2016.
Alibaba, Citic Securities, state-owned China
Reform Holdings, Shenzhen-listed AI
COMPANYû)mYTEKûANDû#)##û#APITALûHAVEûALLû
invested in the company.IDG-BACKED SHEIN MULLS US IPOOnline apparel retailer SHEIN is preparing for
a US IPO that could raise at least US$500m,
according to people close to the deal.
The company has started preparatory
work with advisers and the deal could come
as early as this year.78 International Financing Review March 7 2020ASIA-PACIFIC EQUITIES
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Including all domestic and international deals and rights issues
Source: Refinitiv SDC code: C4a11 Morgan Stanley 14 3,267.73 11.4
2 China Secs 5 2,702.20 9.4
3 CICC 15 2,677.38 9.4
4 Citic 7 2,024.37 7.1
5 Goldman Sachs 10 1,355.01 4.7
6 UBS 8 1,114.22 3.9
7 HSBC 7 946.49 3.3
8 BofA 7 936.41 3.3
9 Citigroup 7 924.24 3.2
10 Sinolink Securities 3 642.11 2.2
Total 280 28,596.44ASIA-PACIFIC EQUITIES (EX-JAPAN)
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Including all domestic and international deals and rights issues
Source: Refinitiv SDC code: C4a21 Morgan Stanley 10 3,056.10 11.5
2 China Secs 5 2,702.20 10.1
3 CICC 15 2,677.38 10.0
4 Citic 7 2,024.37 7.6
5 Goldman Sachs 9 1,295.38 4.9
6 UBS 8 1,114.22 4.2
7 HSBC 7 946.49 3.5
8 Citigroup 7 924.24 3.5
9 BofA 6 908.17 3.4
10 Sinolink Securities 3 642.11 2.4
Total 256 26,688.9210 IFR Equities and SE 2323 p 77 - 87 .indd 78 06 / 03 / 2020 19 : 36 : 29