COUNTRY REPORT CHINADBS Bank is the mandated lead arranger
and bookrunner of the onshore deal, which
pays an interest margin of 116% of the
PBoC rate and has an average life of 1.295
years. The PBoC rate for the one-to-five year
tenor is 4.75%.
Mandated lead arrangers with
commitments of Rmb350m or more earn
an all-in pricing of 140% of the PBoC rate
via a 122.6bp participation fee and a 25bp
early bird fee for commitments by May
- Lead arrangers committing Rmb250m–
Rmb340m receive an all-in of 136% of
the PBoC rate via a combined 123bp fee,
while arrangers coming with Rmb100m–
Rmb240m have an all-in of 134.5% of the
PBoC rate via a combined 113.8bp fee.
Accounts receivables from an offtake
contract with commodity trader Trafigura
Beheer serve as security.
A site visit is scheduled for the second
week of May in Xinjiang. The deadline for
commitments is May 25.
The borrower last signed in November
a US$185m two-year pre-delivery facility
with five lenders. Rabobank was the sole
MLAB.
› GREAT WALL SEEKS RMB500M LOAN
GREAT WALL GUOXING FINANCIAL LEASING is seeking
a Rmb500m one-year term loan for working
capital.
Fubon Bank (China) is the sole mandated
lead arranger and bookrunner. The interest
margin is 115% of the one-year PBoC rate,
which is at 4.35%.
Mandated lead arrangers joining with
Rmb150m or more earn an all-in pricing
of 133% of the PBoC rate via an 80bp fee,
lead arrangers committing Rmb100m–
Rmb149m receive an all-in of 129.9% of the
PBoC rate via a 65bp fee and arrangers with
Rmb70m–Rmb99m commitments get an
all-in of 127.6% of the PBoC rate via a 55bp
fee. The deadline for commitments is June
15.
The borrower, which is headquartered
in Urumqi, the capital of Xinjiang Uygur
Autonomous Region, was taken over
by state-owned China Great Wall Asset
Management via a debt restructuring
process in 2007. It operates in the
manufacturing, mining, power generation,
construction and transportation sectors.
EQUITY CAPITAL MARKETS
› UXIN PLANS US$1BN US IPO
UXIN , one of China’s biggest used-car
marketplaces, plans to raise up to US$1bn
from a US IPO before the end of the first
half.
The online auction house, which counts
KKR, TPG and Warburg Pincus among its
backers, is expected to bring the US$800m–
$1bn US float to the market as early as May,
the people said.
Goldman Sachs , JP Morgan and Morgan
Stanley are leading the transaction.
A spokesperson for Uxin said the
company would not comment on market
rumours or speculation.
Founded in 2011, Uxin operates
Youxinpai, a business-to-business
platform for second-hand car sales, and
Uxin Ershouche, a business-to-consumer
platform. It also operates Uxin Finance,
which provides funds for used-car
transactions.
Uxin has completed several rounds of
private financings. In January 2017, it
sealed a US$500m funding round with TPG,
Jeneration Capital and China Vision Capital
as co-leads. Existing and new investors
Warburg Pincus, Tiger Global Management,
Hillhouse Capital and KKR also participated.
In March 2015, KKR, search engine Baidu
and hedge fund Coatue invested US$170m
in Uxin.› E-HOUSE FILES FOR HONG KONG IPOE-HOUSE (CHINA) ENTERPRISE has applied for an
IPO on the Stock Exchange of Hong Kong,
less than two years after it delisted from
the US.
The real estate transaction service
provider plans to raise about US$600m
from its Hong Kong IPO in the third quarter
of this year, according to a person close to
the deal.
E-House delisted from the New York
Stock Exchange in 2016 following a
management buyout.
According to the filing, the company
posted a 2017 profit and total
comprehensive income of Rmb765.3m
(US$121m) on revenue of Rmb4.6bn.
CICC and Credit Suisse are joint sponsors.› TWO FIRMS FILE FOR HONG KONG IPOSFINUP FINANCE TECHNOLOGY GROUP and 7ROAD
HOLDINGS have filed applications to list on
the Stock Exchange of Hong Kong, joining
the list of Chinese technology companies
looking to float in the city.
FinUp Finance plans to raise about
US$300m–$500m, people familiar with the
situation told IFR earlier.
Founded in 2013, FinUp’s businesses
include peer-to-peer lending platform
Iqianjin, online credit assessment service
app Money Station and FinUp Credit, which
provides personalised information services
to micro-loan applicants.
The company posted 2017 net profit ofRmb488.3m, after a loss of Rmb674.7m in
2016.
Goldman Sachs , China Merchants Securities
and Huatai Financial are joint sponsors on
the float.
Online gaming developer 7Road plans to
raise about US$200m–$300m from a Hong
Kong IPO this year, people close to the deal
told IFR earlier.
The company posted 2017 net profit of
Rmb257.2m on revenue of Rmb445.3m.
In 2017, it recorded an average of 613,000
monthly paying users (MPUs) for its online
games and average monthly active users
(MAUs) for mobile games of 3,400,000.
7Road planned to list in the US in
2012 when it was still a subsidiary of
Nasdaq-listed online game developer
Changyou.com. The plan, however, did
not materialise and Changyou sold 7Road
in 2015.
Founded in 2008 and headquartered in
Shenzhen, 7Road is a developer and an
international distributor of web and mobile
games.
According to the company’s website,
Wartune and DDtank, two of its games,
have been translated into more than 20
languages and published in more than 140
countries.
GF Securities and CCB International are joint
sponsors.› WUXI APPTEC FLOODED WITH ORDERSChinese biotechnology company WUXI
APPTEC received a spectacular response to
its Rmb2.25bn Shanghai IPO, the first high-
profile “new economy” A-share listing since
regulators unveiled plans to attract more
technology companies to the mainland
stock market.
The institutional tranche was 196 times
covered and the retail part 4,913 times
covered before clawback. After clawback,
90% of the shares were sold to retail
investors.
The issuer, which delisted from the NYSE
in 2015, had cut its fundraising size by
61% from its initial target of Rmb5.74bn.
According to a person close to the deal, the
cut was mainly because of the regulator’s
unwritten valuation cap of 23 times
historical earnings.
WuXi AppTec sold 104m shares, or about
10% of its enlarged capital, at Rmb21.60
each.
The IPO price represents a 2017 P/E of
22.99, or a 64.8% discount to the average
valuation of listed peers in the scientific
research and technology services industry.
Huatai United Securities was the sponsor on
the listing and joint bookrunner with Guotai
Junan Securities.
Proceeds will be used for pharmaceutical