International Financing Review Asia November 25 2017 29COUNTRY REPORT CHINAGuangdong Baiyun University. Earlier this
year, it took control of Baiyun Technician
College.
The company posted earnings of
Rmb413m (US$63m) for 2016 and
Rmb200m for the first half of 2017. It plans
to use the proceeds to expand its school
network and develop new campuses.› DARRY RING MULLS HK IPODARRY RING is mulling a Hong Kong listing to
raise about US$300m next year, according
to people familiar with the plan.
The Shenzhen-based jewellery company
recently held meetings with banks to
discuss its potential IPO, the people said.
Darry Ring is known for its unique rules
that each customer can order only one
engagement ring in their lifetime, as a
promise of true love.
A number of celebrities, including
Chinese diver Wu Minxia, actor Zhang
Ruoyun, as well as Hong Kong actor Eric
Suen, represent the brand, according to the
jeweller’s website.
Darry Ring has a total of 138 stores in
Hong Kong and in major Chinese cities,
including Beijing, Shanghai and Shenzhen.
The company did not respond to calls
and emails from IFR seeking comment.› WOMAI TARGETS US$1.6BN VALUATIONCOFCO WOMAI is targeting a valuation of
US$1.5bn–$1.6bn for its Hong Kong listing,
according to people close to the float.
The online grocery store, part of Chinese
food giant Cofco, aims to sell about 18%
of its enlarged share capital and books arescheduled to open on December 4, say the
people.
The company intended to raise about
US$300m, sources told IFR earlier. China
Merchants Securities and Credit Suisse are joint
sponsors.
Womai, which operates womai.com and
newly established bulk-sale website b.womai.
com, has yet to turn profitable, though it has
seen significant revenue growth.
In 2015, womai.com raised US$214m
through a third round of private financing.
Taikang Life Insurance led the financing,
which also saw search engine Baidu come
on as one of the investors. Womai.com was
reportedly valued at around US$1bn during
that financing.
According to its Hong Kong filing, Cofco
(HK) owns 40.87% of the company, while
private-equity firm SAIF controls 19.4%. IDG
Capital has a 15.62% stake, while Taikang
holds 15.99%. Baidu owns 2.13% of the
company.› OKAY FOR QIHOO BACKDOOR LISTINGShanghai-listed elevator manufacturer
SJEC has obtained shareholder approval to
acquire QIHOO 360 TECHNOLOGY, paving the way
for the backdoor listing of the internet
security group.
Qihoo, which delisted from the NYSE in
July last year, plans a Rmb50.42bn merger
with SJEC.
The software maker is the first former
overseas-listed Chinese company to
announce a plan for a backdoor listing
since the CSRC suspended reviews of
A-share relistings through reverse takeovers
in May of last year.According to a company filing, SJEC
plans to buy a 100% stake in Qihoo through
an asset swap and issue of new shares,
which will leave Qihoo co-founder and
chairman Zhou Hongyi the controlling
shareholder of the listco.Huatai United
Securities is the financial adviser.
The plan still needs the approval of the
China Securities Regulatory Commission.
The China Securities Regulatory
Commission has approved five stock listing
applications with combined expected
proceeds of Rmb3bn.
SHENNAN CIRCUITS has started pre-marketing
a Shenzhen IPO of up to Rmb1.35bn.
The fundraising target is about 21% lower
than its initial target of Rmb1.7bn.
The company, a spin-off unit of Avic
International, plans to sell up to 70m
shares, or about 25% of the enlarged
company capital.
It will set the price on November 28 and
start bookbuilding two days later.
Guotai Junan Securities and Avic Securities are
joint sponsors.
The manufacturer of printed circuit
boards plans to use the proceeds for two
production projects and working capital.› GUANGZHOU AUTO SEALS PLACEMENTGUANGZHOU AUTOMOBILE GROUP has raised
Rmb15bn from a private placement of
753m A-shares to five investors at a fixed
price of Rmb19.91 each, or at a discount
of 27.2% to the November 17 close of
Rmb27.36.
The investors are mainly under the
control of the Guangzhou municipal
government.Zambia returns for infrastructure financing
Loans Funds to be used for an infrastructure project with a Chinese company in the countryTHE REPUBLIC OF ZAMBIA is in the syndicated loan
market for a five-year loan of about US$60m,
with Credit Suisse as sole mandated lead
arranger and bookrunner.
The borrower of the facility, which has
an average life of 3.25 years, will be the
country’s Ministry of Finance.
Funds will be used for an infrastructure
project with a Chinese company in Zambia.
The loan marks a return to the loan
markets for Zambia after nearly 18 months.
In June last year, it closed a US$449m dual-
tranche term loan, according to Thomson
Reuters LPC data. Standard Chartered was
the MLAB and facility agent, while Bank
of China joined through its Beijing andJohannesburg branches.
That facility, which carries a guarantee
from China Export and Credit Insurance Corp
(Sinosure), comprises tranches of four and
15 years.
The sovereign’s previous attempt at
a fundraising in the loan markets was in
October 2013, when it sought a US$250m
borrowing. StanChart and Citigroup were the
leads on the loan, which would have marked
its return after a nearly 30-year absence.
However, that loan, and another borrowing
for the United Republic of Tanzania, fell
apart.
Tanzania completed a US$500m loan
five-year in September. Credit Suisse led thatloan, while Nedbank and Bank of China took
part.
The Republic of Kenya is also asking
lenders for a six-month extension on
the repayment of a US$750m two-year
syndicated loan signed in December 2015.
Some 90% of the lenders on the loan have
already agreed to extend the maturity
for six months until April 2018, while the
remaining lenders, which did not agree to
the extension, have been repaid. Citigroup,
Standard Bank and StanChart arranged the
US$750m loan, which was syndicated to 26
banks. It pays an interest margin of 520bp
over Libor.
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