International Financing Review Asia February 10 2018 23COUNTRY REPORT CHINABarclays and Credit Suisse are the joint
bookrunners.› GANSU LENDER EXERCISES GREENSHOEBANK OF GANSU has exercised in full the
greenshoe option of its recent Hong Kong
IPO.
The north-western Chinese bank raised
an additional HK$893m from the sale of
332m shares at HK$2.69 each. Including the
greenshoe, the bank raised HK$6.84bn from
the IPO.
BOC International, CCB International, CMB
International, Guotai Junan International and
Huatai Financial were joint sponsors on the
float. The five banks were also joint global
coordinators and joint bookrunners with
Haitong International. ABC International, ICBC
International and CSR International were the
other joint bookrunners.› BOYA PUTS OFF PRIVATE PLACEMENTBOYA BIO-PHARMACEUTICAL GROUP has postponed
bookbuilding for a proposed private share
placement of up to Rmb1bn due to the
recent stock-market turmoil.
The ChiNext-listed producer of blood
products, which launched the placement
on February 5, decided to suspend the
offering three days later because of the
high volatility in the A-share market,
according to a company filing.
The Shanghai Composite Index fell 5.78%
in the first four days of last week, following
the massive sell-off in the US market on
February 5, when both the S&P 500 index
and the Dow Jones Industrial Average
suffered their biggest single-day percentage
drops since August 2011.
Boya said in the filing that it would
relaunch the placement at a proper time.
“Although the deal has temporarily
suspended, we are still confident to get it
done later,” said a source familiar with the
situation.
“Actually, we have seen enough demand
during soft marketing, but, under the
current market conditions, investors prefer
to wait until the stock market shows some
signs of stabilisation.”
Boya plans to offer not more than 37.50m
shares at a floor price to be set on the first
day of issuance. Proceeds will be used for a
production project.
Great Wall Securities has been named sole
bookrunner.› KTK CONCLUDES SHANGHAI IPOKTK GROUP has raised Rmb1.37bn from a
Shanghai IPO of 42m shares, or about 10%
of its enlarged capital, at Rmb32.69 each.
The IPO price was at a 52% discount tothe average valuation of listed peers in the
railway and other transport equipment
manufacturing industry.
The institutional tranche was about 565
times covered and the retail part 7,452
times covered before clawback. After
clawback, 90% of the shares were sold to
retail investors.
China Securities was the sponsor.
The manufacturer of railway equipment
plans to use the proceeds for the
production of railway equipment and for
working capital.› JIANGSU LEASING COMPLETES IPOJIANGSU FINANCIAL LEASING has raised Rmb4bn
from a Shanghai IPO of 640m shares, or
about 21.4% of its enlarged capital, at
Rmb6.25 each.
It ranks as only the second listed
financial-leasing company in the A-share
market and the first to complete an IPO,
opening a new source of funding for the
fast-growing, capital-intensive sector.
Bohai Capital, a unit of Chinese
conglomerate HNA Group, went public in
Shenzhen through a backdoor listing in
2011.
Jiangsu Leasing’s IPO price was at a 31%
discount to the average valuation of listed
peers in the leasing industry.
The institutional tranche was about 130
times covered and the retail part 1,375
times covered before clawback. After
clawback, 90% of the shares were sold to
retail investors.
Huatai United Securities was the sponsor
on the IPO, proceeds of which will be for
working capital.› REGULATOR APPROVES FOUR FLOATSThe China Securities Regulatory
Commission has approved four applications
for listings to raise a combined Rmb5.1bn.
HUABAO FLAVOURS AND FRAGRANCES, the largest
of the four, is premarketing a ChiNext IPO
of about Rmb2.38bn, with Zheshang Securities
as sponsor.
The spin-off of Hong Kong-listed Huabao
International plans to offer not more than
61.59m shares, or about 10% of its enlarged
capital.
It will start bookbuilding on February 13.
Proceeds will be used for flavours
and food production projects, as well as
working capital.
CHINALIN SECURITIES cleared a CSRC hearing
for a proposed Shenzhen IPO of 270m
shares, or about 10% of its enlarged capital.
The Tibet-based brokerage may raise
about Rmb1.3bn from the IPO, based on its
2016 earnings per share of Rmb0.24 and
the one-month average valuation of 22.57times the historical earnings of the sector.
China Merchants Securities is the sponsor.
Proceeds will be used for working capital.
The float still needs written CSRC
approval.› CSRC CLEARS THREE FOLLOW-ONSHUANENG POWER INTERNATIONAL has cleared a
China Securities Regulatory Commission
hearing for a proposed private share
placement of up to Rmb5bn.
The power producer is looking to make
available not more than 800m A-shares at
a floor price to be set on the first day of
issuance.
Citic Securities is the sponsor. Proceeds will
be used to fund wind and thermal power
projects. The placement still needs written
CSRC approval.
TIANJIN CAPITAL ENVIRONMENTAL PROTECTION
GROUP has received written CSRC approval
for a proposed private placement of
A-shares of up to Rmb1.84bn.
The company, listed in Hong Kong and
Shanghai, plans to offer not more than
285m shares at a floor price to be set on the
first day of issuance.
Citic Securities is the sponsor. Proceeds will
be used for sewage-processing, as well as
energy-cooling and heating-supply, projects.
SHAANXI INTERNATIONAL TRUST has cleared a
CSRC hearing for a proposed rights issue of
up to Rmb3bn. The trust company plans to
offer up to 927m right shares on a 3-for-10
basis.
Largest shareholder Shaanxi Coal
and Chemical Industry Group, which
owns 34.58% of SIT, will take up its full
entitlement.
China Securities is the sole bookrunner.
Proceeds will be used for working capital.
The company still needs written CSRC
approval.› CNPC COMPLETES RECORD EB ISSUECHINA NATIONAL PETROLEUM CORP has raised
Rmb20bn from a public offering of five-
year exchangeable bonds, the largest
such transaction in the Chinese domestic
market.
The securities can be exchanged for the
A-shares of PETROCHINA after 12 months.
Institutional investors bought 70% of the
securities and retail investors purchased the
rest. The retail tranche was about 31 times
covered, according to an exchange filing.
Being the first public EB issue of the year,
the oil giant set more investor-friendly
terms than for its initial outing last year,
in a sign that Chinese issuers have to work
harder to woo investors after a flood of
equity-linked offerings and an increase in
onshore bond yields.1028_06 Country01.indd 23 09/02/2018 22:00:07