existing projects and explore new
tourism destinations, as well as to repay
outstanding bank loans. The remainder
will be used to expand the business and on
working capital.
Fosun Tourism operates resorts through
Club Med and Club Med Joyview. It also
develops and operates tourism destination
Atlantis Sanya and has a joint venture with
tour operator Thomas Cook.
Fosun, co-founded by Chinese billionaire
Guo Guangchang, is one of China’s most
acquisitive overseas dealmakers.
CLSA, Citigroup and JP Morgan are the joint
sponsors of the deal.
› LUZHOU BANK KICKS OFF HK IPO
LUZHOU CITY COMMERCIAL BANK plans to raise up
to HK$1.86bn from a Hong Kong IPO.
The Sichuan-based bank is offering 546m
shares at an indicative range of HK$3.15–
$3.40 a share.
There is a 15% greenshoe option.
Three investors have committed to a
total of 270m shares as cornerstones.
Proceeds will be used to strengthen the
bank’s capital base for future growth.
It posted a net profit of Rmb377m for the
first half of 2018, up 31% year on year.
As of June 30 2018, the lender had total
assets of Rmb74.6bn. Its non-performing
loan ratio and core Tier 1 capital
adequacy ratio stood at 0.91% and 9.35%,
respectively.
The deal will price on December 10 and
the bank is due to be listed on December
17.
CLSA is the sole sponsor. CCB International,
China Galaxy International, China Silk Road
International Capital and SBI China Capital are
also working on the float.
› NATURAL FOOD PRICES IPO AT BOTTOM
NATURAL FOOD INTERNATIONAL, a health food
company in China, has raised HK$682m
from an IPO priced at the bottom of the
indicative price range, according to people
close to the deal.
The company, which sells products
under the Wugu Mofang brand, sold 421m
primary shares, or 19% of the enlarged
share capital, at the bottom of the
HK$1.62–$2.10 range.
The final price represents a 2019 P/E of
11.
Books were well oversubscribed across
the range with a good mix of demand from
long-only investors, hedge funds, corporate
and high-net-worth individuals, said one of
the people.
There is an overallotment option of up to
15% of the base size.
Founded in 2007, the company’s products
range from snacks to personal care
products made of grains, beans, nuts, dried
fruits and other natural ingredients.
It posted a net profit of Rmb186m in
2017, up 112% from a year earlier.
The shares are due to be listed on
December 12.
CICC and CMBC Capital were the joint
sponsors.› XINYI ENERGY KICKS OFF HK IPOXINYI ENERGY, a spin-off of Hong Kong-listed
Xinyi Solar, has kicked off a Hong Kong IPO
of up to HK$4.55bn (US$582m).
The company is selling 1.88bn shares,
or 28% of the enlarged share capital, in
an indicative range of HK$1.89–$2.42
per share. The range gives the company
a market capitalisation of HK$12.5bn–
$16bn.
The IPO comprises an international
placement of over 1.11bn shares and
reserved shares of 766m to be sold to
shareholders of its parent company, Hong
Kong-listed Xinyi Solar, through an assured
entitlement on a 1-for-10 basis.
Hong Kong-listed Xinyi Glass, which
owns a 29.74% stake in Xinyi Solar
according to Refinitiv data, said last week
it intended to participate in Xinyi Energy’s
assured offering.
There is a 15% greenshoe option on the
base deal.
The proceeds will mainly used to acquire
target companies, with the remainder
earmarked for working capital and loan
refinancing.
Established in 2015, Xinyi Energy owns
and operates solar farm projects initially
developed and constructed by Xiniyi Solar.
Its 2019 forecast net profit is HK$1.3m
with distributable income of HK$980m and
a dividend yield of 7.83%, according to a
term-sheet.
The deal will price on December 13.
BNP Paribas is the sole sponsor.› ZHAOGANG.COM SEEKS LISTING OKChinese online steel marketplace ZHAOGANG.
COM sought listing approval from the Stock
Exchange of Hong Kong last week for an
IPO of about US$100m, according to people
close to the deal.
Pre-marketing will start this week if
approval is granted, said the people.
China Merchants Securities, Citigroup and
Goldman Sachs are joint sponsors for the
deal. China Renaissance is the sole financial
adviser.
According to the regulatory filing,
Zhaogang’s revenue was Rmb17bn
(US$2.6bn) in 2017, representing 94%
growth from a year earlier. The company,however, lost Rmb124m in 2017, narrowing
from a Rmb822m loss in 2016.
Founded in 2012, Zhaogang.com provides
steel storage and processing services,
logistics and online trading capabilities› CIFI HOLDINGS LAUNCHES CB BUYBACKChinese property developer CIFI HOLDINGS
GROUP is offering to buy back a 363-day
convertible bond due February 2019.
The company sold the HK$2.79bn
(US$357m) CB at the beginning of the year.
The zero-coupon CB was priced at a
yield-to-maturity of 1.5% and a conversion
premium of 30%. The initial conversion
price is HK$9.30.
The minimum buyback price is 100.50%
and the maximum buyback price is
101.00%.
JP Morgan is the sole dealer manager.
The buyback offer ended last Friday.HONG KONG
SYNDICATED LOANS
› BAC INTERNATIONAL INCREASES REFIPanama’s BAC INTERNATIONAL BANK has
increased a three-year bullet term loan to
US$250m from US$150m.
Joint lead arrangers and bookrunners
Wells Fargo and Standard Chartered have
brought in 15 banks. Signing was expected
to take place last week.
Funds are to refinance a US$150m loan
signed in December 2015 and also for
working capital purposes.
The facility was oversubscribed although
this year’s deal pays less with an interest
margin of 135bp over Libor and a top-level
all-in pricing of 155bp compared to 2015.
The 2015 facility pays a margin of 170bp
over Libor and offered a top-level all-in
pricing of 195bp when the borrower was
rated Baa3/BBB– (Moody’s/S&P).
BAC International is currently rated Baa3/
BB+ (Moody’s/S&P).
Banco de Bogota, Colombia’s second-
largest bank, is the borrower’s parent.
For full allocations, see http://www.ifrasia.com.› HAITONG RETURNS FOR REFIHAITONG INTERNATIONAL SECURITIES GROUP is
tapping relationship banks to refinance
a HK$12.8bn (US$1.65bn then) three-year
facility signed in 2016.
An arranger group is said to be forming,
but the pricing is not yet known.