IFR Asia – February 10, 2018

22 International Financing Review Asia February 10 2018

in five deals through various units. The

loans carried short maturities of two years

or below, according to Thomson Reuters

LPC data.

These included a HK$3.8bn-equivalent

(US$485m) 364-day financing and a

HK$1.1bn one-year club loan signed in

November, a HK$2.72bn 364-day facility

in October, a US$800m 364-day borrowing

in August, and a US$110m two-year ship

funding in July.

› MINSHENG FL GOING SHIBOR AGAIN

MINSHENG FINANCIAL LEASING is raising a one-

year term loan of Rmb500m in what will

be China’s second syndicated facility to pay

interest based on the Shibor benchmark.

Hana Bank (China) is sole mandated lead

arranger and bookrunner on the new loan,

paying an interest margin of 80bp over one-

year Shibor.

MLAs with Rmb200m or more get a top-

level all-in pricing of 95bp over Shibor, via

a 15bp fee, lead arrangers with Rmb150m–

Rmb199m get an all-in pricing of 90bp over

Shibor, via a 10bp fee, and arrangers with

Rmb100m–Rmb149m get an all-in of 85bp,

via a 5bp fee. Commitments are due on or

before March 23.

Funds are for refinancing and working

capital.

This is the second Shibor-linked

syndicated loan in the onshore market

in less than six months. The first was in

October, when Merchants Union Consumer

Finance closed a Rmb1.15bn one-year loan,

paying a top-level all-in of 115bp over

Shibor, based on a margin of 100bp. Fubon

Bank (China) was sole MLAB and the loan

marked MUCF’s debut.

Minsheng Financial Leasing last tapped

the onshore market in September 2015 for

a US$150m two-year bullet from 10 banks,

including sole bookrunner Credit Suisse.

The loan received a strong response even

though the borrower revised the terms,

including a reduced size, and a cut to the

tenor and pricing.

That facility ended up offering a top-level

all-in of 200bp over Libor, based on an

interest margin of 165bp.

Its previous visit to the offshore market

was last December for a US$140m 6.5-year

ship financing. It was also in the market for

a US$164m pre-delivery payment facility in

October.

EQUITY CAPITAL MARKETS

› LY.COM PLANS HONG KONG IPO

LY.COM, one of China’s largest travel booking

websites, aims to list in Hong Kong this

year to raise up to US$800m, according to

people close to the plans.

They say the company plans to bring the

IPO of US$600m–$800m to the market as

early as the second half of the year through

leads CMB International, JP Morgan and

Morgan Stanley.

LY.com attracted investments of more

than Rmb6bn (US$954m) in 2015 from

Wanda Culture Industry Group, the

entertainment arm of Dalian Wanda

Group, Tencent Industrial Capital, a unit of

Tencent Holdings, and Citic Capital. As the

lead investor, Wanda put in Rmb3.58bn.

In late 2016, LY.com merged with

Wanda Tourism, the travel arm of the

Chinese conglomerate. Commenting on

the merger, LY.com CEO Wu Zhixiang told

mainland media at the time the company

was forecast to post a 2018 net profit of

Rmb2bn on revenue of Rmb50bn.

› NEW PEAK WORKS ON US IPO

NEW PEAK GROUP, a Chinese online pharmacy

and health service platform, intends to

raise US$100m–$200m from a US IPO

this year, according to people close to the

plans.

New Peak mainly runs online drugstore

111.com.cn, which sells drugs and health-

related products, such as supplements. It

also runs a B2B online platform that allows

hospitals and pharmacies to buy drugs

directly from manufacturers. In addition,

it runs health service portal Yizhen, which

offers online doctor diagnosis to customers.

According to New Peak’s website, 111.

com.cn has 20 million registered users.

JP Morgan and Morgan Stanley are leads on

the float.

› A-LIVING SERVICES COMPLETES IPO

Developer Agile Group Holdings’ A-LIVING

SERVICES has raised HK$4.1bn (US$524m)

from an IPO priced slightly below the

midpoint of the indicative range.

The China-focused provider of property

management services sold 333.33m shares

at HK$12.30 each, off a HK$10.80–$14.20

range.

Agile will hold a stake of about 54%

in A-Living on completion of the IPO.

Proceeds will be used to fund investments,

acquisitions and upgrade operations.

Trading in the shares commenced on

February 9.

HSBC and Huatai Financial were joint

sponsors on the global offering, as well

as joint global coordinators and joint

bookrunners with Morgan Stanley. The other

bookrunners were ABC International, BNP

Paribas, CCB International, China Securities

International and ICBC International.

› GANFENG PLANS HK LISTING

GANFENG LITHIUM has applied for China

Securities Regulatory Commission approval

to issue H-shares of about US$1bn on the

main board of the Stock Exchange of Hong

Kong.

Citigroup is working on the transaction,

according to people familiar with the

situation.

The Shenzhen-listed lithium producer

plans to sell no more than 20% of its

enlarged capital, or about 185m H-shares,

based on its current total equity of

742m. The fundraising size may reach

Rmb10.87bn, based on the February 2 close

of Rmb58.78.

There is also a greenshoe option of 15%

of the base deal size.

Proceeds will be used for mergers

and acquisitions, output expansion, and

research and development, among other

things.

› HUAMI COMPLETES US LISTING

HUAMI, a maker of fitness trackers for

Chinese smartphone company Xiaomi, has

raised US$110m from a NYSE IPO.

The company sold 10m American

depositary shares at US$11 each, midpoint

of the indicative price range of US$10–$12.

The final price represents a 2018 P/E

of 14.7 and a 2019 P/E of 10.5. The top 10

investors took 80% of the shares.

Founded in 2014, Beijing-headquartered

Huami manufactures under the Mi brand for

Xiaomi and under its own Amazfit brand.

Pre-IPO investors included Xiaomi and

Shunwei Capital, a venture capital firm

that Xiaomi CEO Lei Jun co-founded. Prior

to the IPO, Xiaomi owned a 19.3% stake,

while Shunwei had 20.4%, according to the

prospectus.

Credit Suisse, Citigroup and China

Renaissance were joint bookrunners.

› JINKOSOLAR COMPLETES FOLLOW-ON

JINKOSOLAR, a Chinese maker of photovoltaic

cells, has raised US$65m from a follow-on

offering of 3.6m shares, priced at US$18.15

each, or a 10.8% discount to the February 6

close of US$20.35.

JinkoSolar shares fell 10.8% to US$18.16

on February 7.

There is a greenshoe of 15% of the base

deal size.

Concurrently, company chairman Xiande

Li and CEO Kangping Chen have agreed to

buy US$35m of shares through a private

placement.

The New York Stock Exchange-listed

company plans to use the proceeds for

general corporate purposes.

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