kindergartens, targeting infants to six-year
olds.
As of June 30 2017, it directly operated 80
kindergartens and franchised an additional
175, while also having 853 play-and-learn
centres in its network.
The company posted earnings of
US$5.9m in 2016 and US$4.9m in the first
half of 2017.
Credit Suisse and Morgan Stanley were leads
on the float. BNP Paribas and CICC were also
underwriters.
The company plans to use the proceeds
for general corporate purposes and working
capital, as well as potential acquisitions.
› RISE EDUCATION PREMARKETS IPO
RISE EDUCATION has started premarketing a US
IPO with Credit Suisse and Morgan Stanley as
bookrunners.
The Bain Capital-owned Chinese
education company applied for a US$100m
Nasdaq float to the Securities and Exchange
Commission on September 22.
According to the regulatory filing, for
the first six months of the year, Rise’s
net income jumped 217% year on year to
Rmb58m.
Rise provides after-school English
language programmes for students in China
aged between three and 18 years.
› ZHENRO PROPERTIES FILES FOR IPO
Shanghai-based developer ZHENRO
PROPERTIES has applied for a listing to the
Stock Exchange of Hong Kong with CCB
International as the sole sponsor.
According to people close to the process,
the company plans to raise about US$400m
from the float.
Zhenro posted a net profit of Rmb1.2bn
in 2016. For the first six months of 2017,
its net profit fell 33% year on year to
Rmb377m.
As of June 30 2017, Zhenro had a
portfolio of 68 property projects with an
aggregate gross floor area of about 11.2m
sqm, located in 15 cities at various stages of
development, according to the filing.
› PICC FILES FOR SHANGHAI LISTING
PEOPLE’S INSURANCE COMPANY (GROUP) OF CHINA
(PICC) has applied for China Securities
Regulatory Commission approval to launch
a Shanghai listing of up to 4.60bn A-shares,
or about 9.78% of its enlarged capital.
The listing may see the insurer raise
Rmb13bn, based on September 26 closing
price of HK$3.42, equivalent to Rmb2.91.
CICC and Essence Securities are working
on the listing. Proceeds will be used for
working capital.
› NETDRAGON BUILDS WAR CHESTChinese developer of online games
NETDRAGON WEBSOFT has raised HK$978m from
a top-up placement.
The company sold 38.5m shares at the
bottom of an indicative price range of
HK$25.40–$26.25, or at a discount of 7.1% to
the pre-deal spot.
The book was more than twice covered
with about 35 investors participating,
including existing shareholders and new
investors. Demand predominately came
from Asia.
The company plans to use the proceeds
for general corporate purposes and to fund
the growth of its online education business.
There is a 90-day lock-up period on the
company.
Goldman Sachs was the sole bookrunner.› 361 DEGREES BLOCK RAISES HK$563MA group of stakeholders have sold shares
in Chinese sporting goods maker 361 DEGREES
INTERNATIONAL to raise HK$563m.
The sale, involving 150m shares, or 7.25%
of the company’s enlarged equity capital,
was priced at the bottom of the indicative
range of HK$3.75–$3.95, or at a discount of
13.6% to the pre-deal spot.
The vendors were shareholders Dings
International, Ming Rong International, Hui
Rong International, Jia Wei International,
Jia Chen International and Jian Tong
Investments.
UBS was the sole bookrunner.
There is a 180-day lock-up period on the
vendors.› SHOUHANG DOES PRIVATE PLACEMENTBEIJING SHOUHANG RESOURCES SAVING has raised
Rmb4.47bn from a private placement of
568m shares to eight investors at a price
set at Rmb7.87, or a discount of 7.7% to the
pre-deal spot.
Mutual funds and securities companies
were main buyers. Industrial Securities was
the sole bookrunner.
The producer of air-cooling systems
will use the proceeds for two solar power
projects.
ZHEJIANG NHU has received written China
Securities Regulatory Commission approval
for a proposed private placement of not
more than 279m shares to raise up to
Rmb4.9bn at a floor price of Rmb17.59.
The manufacturer of nutrition products
plans to use the proceeds for production of
methionine. China Securities is the sponsor.
ZHEJIANG DIAN DIAGNOSTICS has secured board
approval for a proposed private placement
of not more than 110m shares to raise up to
Rmb2.37bn at a floor price to be set on thefirst day of issuance. China Securities is the
sole bookrunner.
The medical diagnosis outsourcing
service provider plans to use the proceeds
for acquisitions, research and development,
as well as production projects. Shareholders
will review the proposal on October 9.
NUODE INVESTMENT has secured board
approval for a proposed private placement
of not more than 230m shares to raise up
to Rmb2bn at a floor price to be set on the
first day of issuance.
Controlling shareholder Shenzhen
Bangmin Venture Capital Investment has
agreed to subscribe to no less than 30% of
the placement.
The manufacturer of new materials plans
to use the proceeds to produce battery
materials and replenish working capital.
Shareholders will review the proposal on
October 13.› CSRC APPROVES NINE FLOATSThe China Securities Regulatory
Commission has approved nine listing
applications to raise a combined Rmb6.6bn.
CAITONG SECURITIES has started premarketing
a Shanghai IPO of about Rmb3bn–Rmb4bn.
The Hangzhou-based securities house
plans to sell up to 359m shares, or about
10% of its enlarged capital. The offering is
about 64% lower than an initial target of
1bn shares.
Caitong will set the price on October 10
and start bookbuilding two days later.
UBS Securities is the sponsor and joint
bookrunner with Citic Securities.
Proceeds will be used for working capital.
Automotive electronics manufacturer
FORYOU has raised Rmb1bn from a Shenzhen
IPO of 73.10m shares at Rmb13.69 each,
with UBS Securities as the sponsor.
The IPO price represents a 54% discount
to the average valuation of listed peers
in the computers, communications and
other electronic equipment manufacturing
industry.
The institutional tranche was about 1,251
times covered, while the retail one was
7,354 times covered before clawback. After
clawback, 90% of the shares had been sold
to retail investors.
Proceeds will be used for production
projects and research and development.› APPROVALS FOR PLACEMENTSDR PENG TELECOM AND MEDIA GROUP has cleared
a China Securities Regulatory Commission
hearing for a proposed private share
placement of up to Rmb4.8bn.
The company is looking to place not
more than 286m shares at a floor price to
be set on the first day of issuance. Existing