Founded in 2008, SheIn mainly targets
markets outside China. It sells products to
more than 220 countries and regions around
the world.
The company sells womenswear but also
sells men’s apparel, children’s clothes,
accessories, shoes, bags and other fashion
items.
SheIn, which counts IDG Capital among
its investors, mostly sells products for under
US$20. It is reported that its revenues
exceeded Rmb10bn (US$1.44bn) in 2018.
The company was founded as Sheinside
and rebranded to SheIn in 2015.DONGYUE ORGANOSILICON
COMPLETES IPOSHANDONG DONGYUE ORGANOSILICON MATERIALS
wrapped up its Rmb2.07bn (US$294m)
ChiNext IPO on March 6.
The retail tranche of its IPO has been
oversubscribed 2,632 times.
The company clawed back 60% of the
offering from the institutional tranche to
the retail part, for an eventual 10%/90% split
between the two.
The chemical products manufacturer sold
300m shares, or 25% of the enlarged capital,
at Rmb6.90 per share.
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.INNOCARE PRE-MARKETS VIRTUAL
HK IPOBiotech company INNOCARE PHARMA started
pre-marketing a Hong Kong IPO of about
US$250m–$300m last Monday.
The clinical-stage company is marketing the
deal through video or telephone calls. Books
are tentatively scheduled to open on March 11.
It originally planned to start pre-
marketing in the week after the Lunar New
Year holiday. However, the coronavirus
OUTBREAKûPRESENTEDûDIFlCULTIESûASûINVESTORSû
do not want face-to-face meetings and travel
restrictions are in place for Chinese citizens
and those who have recently been to China.
InnoCare has a pipeline of nine drug
candidates focusing on therapies for the
treatment of cancer and auto-immune
diseases.
It posted a loss of Rmb322m (US$45m) for
the six months ended June 30, compared with
Rmb279m for the same period a year earlier.
It had a full-year loss of Rmb554m in 2018.
Goldman Sachs and Morgan Stanley are the
joint sponsors.SELL-DOWN IN CHINA TOWER
Sole bookrunner CICC arranged a sell-down
in CHINA TOWER last Wednesday that raised
HK$1.2bn (US$156m).
The deal involved the sale of about 623m
shares at HK$1.95 each, representing a
discount of 2% to the company’s close of
HK$1.99 on Wednesday.
It is understood that China National
Petroleum Corporation was the seller. CNPC
Capital, an investment arm of the oil giant,
was a cornerstone investor in China Tower’s
IPO in August 2018, buying about 623m
shares at HK$1.26.
The shares were sold to a few investors.CHINA RESUMES IPO HEARINGSThe China Securities Regulatory Commission
and the Shanghai Stock Exchange resumed
IPO hearings last week via video conferences
with issuers because of coronavirus-related
restrictions on travel and meetings.
The two bodies had not held IPO hearings
since January 17.
THREE’S COMPANY MEDIA GROUP and GUANGDONG
HAOMEI NEW MATERIAL cleared CSRC video
hearings on March 5 for IPOs of Rmb1.03bn
(US$148m) and Rmb700m, respectively.
The SSE will hold similar hearings for
TRINA SOLAR (Rmb3bn) and KBC CORPORATION
(Rmb322m) on March 11.
Regulators have also reduced listing costs and
arranged video broadcasting for online IPO
ceremonies and roadshows during the outbreak.WUHAN-BASED FULU FILES FOR HK IPOWuhan-based virtual goods and services
provider FULU HOLDINGS plans to raise about
US$100m from a Hong Kong IPO, according
to people with knowledge of the matter.
The company, which is located in the city
at the epicentre of the coronavirus
OUTBREAK ûlLEDûWITHûTHEû3TOCKû%XCHANGEûOFû
(ONGû+ONGûFORûTHEûPLANNEDûmOATûLASTû&RIDAY
Fulu said it is allowing employees to work
from home and that it has formed a contingency
planning team to monitor developments related
to the spread of the virus. None of its directors or
employees are suspected of being infected.
The company said there have been no
material disruptions to its business or
OPERATINGûDIFlCULTIESûCAUSEDûBYûTHEûOUTBREAKû
as it provides services to its clients over the
internet and saves its data on the cloud.
Most of its clients are online technology
companies and so are generally less affected
by the virus than other parts of the Chinese
economy, and some of its virtual goods
vendor partners have even seen business
growth as people stay at home, it said.
Fulu connects vendors to e-commerce and
online payment platforms and facilitatedtransactions of Rmb13.3bn (US$1.9bn) for
the 12 months ended September 30 2019.
The business earns commissions by
facilitating sales through its platform.
For the nine months ended September 30
ûITûPOSTEDûAûPROlTûOFû2MBM ûUPûû
from the same period of 2018.
CMB International is the sole sponsor.SDPM TO SPIN OFF UNIT ON CHINEXTShenzhen-listed SUZHOU DONGSHAN PRECISION
MANUFACTURING plans to spin off subsidiary
SUZHOU RF TOP ELECTRONIC COMMUNICATIONS on
the Shenzhen ChiNext board.
The parent company said the listing
would enhance the brand awareness of its
subsidiary, and help it to increase its market
SHAREûANDûPROlTABILITY
RF Top Electronic, founded in 2005, was one
of the earliest companies in China to develop
ceramic dielectric RF devices. It posted a net
PROlTûOFû2MBMû53M ûONûREVENUESû
OFû2MBMûINûTHEûlRSTûNINEûMONTHSûOFû
The parent holds a 56.3% stake in Suzhou
RF Top.
The spin-off proposal needs approval from
shareholders and regulators.INDIA
BURGER KING PLANS IPO THIS MONTHBURGER KING INDIA is planning to launch an IPO
of about Rs10bn (US$138m) later this
month, people with knowledge of the
transaction said.
Primary shares of Rs4bn and 60m
secondary shares from QSR Asia, an
Everstone Capital entity, will be sold.
Everstone owns and operates Burger King
restaurants in India and Indonesia.
Burger King India is planning a pre-IPO
placement of Rs1.5bn and, if successful, the
IPO size will be reduced accordingly.
The company recorded revenue of
Rs6.3bn in the year to March 31 2019, up
67% from Rs3.78bn in 2018. Its net loss
narrowed to Rs383m from Rs822m.
CLSA, Edelweiss, Kotak and JM Financial are
lead managers.PNB HOUSING BOARD APPROVES
SHARE SALEThe board of PNB HOUSING FINANCE has
approved a plan to raise up to Rs17bn
53M ûTHROUGHûAûQUALIlEDûINSTITUTIONALû
placement of new shares.
The QIP is likely to be launched once the
company obtains shareholder approval
through a postal ballot.
JM Financial and Kotak are the banks on the
transaction.International Financing Review March 7 2020 79EQUITIES ASIA-PACIFIC10 IFR Equities and SE 2323 p 77 - 87 .indd 79 06 / 03 / 2020 19 : 36 : 29