COUNTRY REPORT CHINAfor a NYSE IPO of up to US$349m.
The company is selling 19.4m American
depositary shares at an indicative price
range of US$16–$18. Pricing is slated for
March 26.
Bank of America Merrill Lynch, Morgan Stanley
and UBS are joint bookrunners.
The company plans to use the proceeds
for general corporate purposes.
› SUNLANDS LAUNCHES US IPO
China’s SUNLANDS ONLINE EDUCATION GROUP
has launched a NYSE IPO to raise up to
US$175.5m.
The provider of online post-secondary
and professional education is selling 13m
American depositary shares at an indicative
price range of US$11.50–$13.50 each.
Pricing is slated for Thursday.
Credit Suisse, Goldman Sachs and JP Morgan
are joint bookrunners on the float.
› XINHUA EDUCATION EYES LISTING
CHINA XINHUA EDUCATION has started
bookbuilding for a Hong Kong IPO of up to
HK$1.48bn.
The private provider of higher education
in China is selling 400m primary shares,
or 25% of its enlarged company capital, at
an indicative price range of HK$2.83–$3.69
each.
The range represents a pre-shoe 2018
P/E ratio of 14.7–19.1 and a post-shoe 2018
multiple of 15.2–19.9.
The IPO has attracted two cornerstone
investors to be subjected to a six-month
lock-up period. China New City Commercial
Development and BOCOM International
Prosperity Investment have each pledged
US$10m.
Books will close on Monday with pricing
slated for the same day. Trading will start
on March 26.
Macquarie is sole sponsor and joint global
coordinators with ABC International. The two
banks are also joint bookrunners with CMB
International.
› HUIFU PAYMENT FILES FOR IPO
China’s HUIFU PAYMENT has filed for a Hong
Kong listing, naming CLSA and JP Morgan as
joint sponsors.
IFR reported last December that the
Chinese third-party payment firm intended
to raise about US$400m–$500m from a
Hong Kong float in 2018.
According to a regulatory filing, Huifu
posted a 2017 net profit of Rmb133m, up
12% year on year.
Trixen, an affiliated company of the
Sampoerna Group, owns a 29.99% stake in
Huifu, while Bain Capital holds 22.45%.
Founded in 2006, Huifu began as
an online payment firm and has since
diversified into infrastructure services
for other financial sectors, including
peer-to-peer lending platforms, wealth
management, consumer finance, private
equity and exchanges.› CIMC PLANS H-SHARE PLACEMENTCHINA INTERNATIONAL MARINE CONTAINERS (GROUP)
plans to sell up to 343m new H-shares,
or about 10.3% of its enlarged company
capital, according to its filing.
The placement will raise HK$4.78bn,
based on the March 13 closing price of
HK$13.94. The manufacturer of road-
transport vehicles and containers plans
to use the proceeds for general corporate
purposes.
CIMC recently scrapped a private
placement of A-shares targeting up to
Rmb6bn due to changes in the capital
market, industry environment and relevant
policies after almost two years since
announcing the plan. Goldman Sachs
Gao Hua Securities and China Merchants
Securities were joint sponsors.› VINDA BLOCK BRINGS HK$544MSweden’s Industrivarden has raised
HK$544m from a block of shares in Hong
Kong-listed VINDA INTERNATIONAL.
The 40m shares, or 3.3% of the existing
company capital, were sold at the bottom
of the indicative price range of HK$13.60–
$13.90, representing a discount of 12% to
the pre-deal spot.
The sale was well covered and allocation
was concentrated at the top of the book.
There is a 90-day lock-up on the vendor.
Morgan Stanley was the sole bookrunner.› NANJINGSEC GETS IPO CLEARANCENANJING SECURITIES has cleared a China
Securities Regulatory Commission hearing
for a proposed Shanghai IPO of up to 825m
shares, or 25% of its enlarged capital.
The brokerage could raise around
Rmb2.3bn, based on its 2017 earnings
per share of Rmb0.16 and the regulators’
unwritten valuation cap of 23 times
historical earnings.
Soochow Securities is the sponsor and joint
bookrunner with Hua Ying Securities.
The IPO still needs written CSRC
approval.
The CSRC also approved three listing
applications to raise a combined Rmb1.7bn.
SICHUAN TIANYI COMHEART TELECOM, the largest
of the three successful applicants, aims to
raise about Rmb796m from a ChiNext IPO,
with GF Securities as sponsor.The supplier of optic communication
products plans to offer not more than
66.85m shares, or about 25% of its enlarged
company capital.
Proceeds will be used to upgrade
technology and for working capital.› DATANG GETS PLACEMENT OKAYDATANG INTERNATIONAL POWER GENERATION has
received written approval from the China
Securities Regulatory Commission for the
A-tranche of its proposed US$2.11bn private
placement of A-shares and H-shares.
The power-generation company received
CSRC approval for the H-tranche placement
last September.
Datang International plans to raise up
to Rmb8.33bn from the placement of not
more than 2.66bn A-shares to controlling
shareholder China Datang.
Proceeds will be used to fund
construction of power plants and repay
loans.
The company also plans to raise up to
HK$6.22bn from the sale of 2.79bn H-shares
to Datang at HK$2.226 each. Proceeds will
be used for general corporate purposes.
China Securities and China Merchants
Securities are joint bookrunners for the
A-share tranche of the placement, while
China Merchants Securities, China Securities
International and CLSA are financial advisers
on the H-share tranche.
BEIJING JETSEN TECHNOLOGY has secured
board approval for a proposed private
share placement of up to Rmb3bn. The
ChiNext-listed audio and video company
plans to place up to 20% of its total issued
capital to not more than five investors at
a floor price to be set on the first day of
issuance.
Strategic investor JIC Huawen
Investment, a subsidiary of China Jianyin
Investment, has agreed to subscribe to no
less than Rmb199m of the shares, with a
lock-up period of 36 months.
Proceeds will be used for film production
and cloud platform projects.
The placement still needs approvals from
shareholders and regulators.› GUANGHUI LAUNCHES RIGHTS ISSUEGUANGHUI ENERGY launched a rights issue of
up to Rmb4bn, with bookbuilding slated to
start on Tuesday.
The natural gas and coal company plans
to offer up to 1.57bn rights shares on a
3-for-10 basis. The price has been set at
Rmb2.55, a discount of 42.4% to the March
14 close of Rmb4.43.
Proceeds will be used for a liquefied
natural gas project and debt repayment.
China Securities is the sole bookrunner.