COUNTRY REPORT CHINAAccording to the filing, Meituan-Dianping
posted a loss of Rmb18bn (US$2.9bn) in
2017, versus a loss of Rmb5.8bn in 2016. Its
unaudited adjusted net loss was Rmb2.9bn.
Meituan-Dianping was formed in 2015
from the US$15bn merger of Meituan and
Dianping.
Meituan-Dianping was valued at around
US$30bn in a fundraising round last year.
It is aiming for a US$60bn valuation in the
IPO.
Bank of America Merrill Lynch , Goldman Sachs
and Morgan Stanley are joint sponsors for
the Meituan deal. China Renaissance is the
financial adviser.
Meituan is the latest company with
dual-class shares filing for a Hong Kong
IPO, after Chinese smartphone maker
Xiaomi.
Wang Xing owns 11.4% of the company
through 573m A-shares that carry voting
rights of about 48.4%. Tencent owns 20.1%
and Sequoia Capital 11.4%.
› CHINA TOWER WINS LISTING APPROVAL
Mobile phone infrastructure company CHINA
TOWER has won listing approval for a Hong
Kong IPO of up to US$10bn, according to
people close to the deal.
Pre-marketing of the deal may start next
week but no decision has been made as yet,
say the people.
The company, which could be valued
at up to US$40bn, is planning to raise
US$8bn–$10bn from the float, say the
people.
CICC and Goldman Sachs are the joint
sponsors.
At US$10bn, China Tower’s float will
be the world’s largest IPO since Chinese
e-commerce giant Alibaba raised US$25bn
from a US IPO in 2014.
› CHINA GRAND PULLS PLACEMENT
Hong Kong-listed CHINA GRAND PHARMACEUTICAL
AND HEALTHCARE has pulled a top-up
placement of HK$572m (US$73m) that was
launched last Monday.
According to a term-sheet obtained by
IFR, the company intended to sell 110m
shares at HK$5.20 each or at a 4.9% discount
to the pre-deal spot.
There was an upsize option of 21m
shares.
According to people close to the deal,
the company decided to pull the proposed
placement amid worsening market
conditions during bookbuilding.
Nomura was the sole global coordinator
for the placement. The bank was also a
joint placing agent with Everbright Securities
and Celestial Capital.
China Grand Pharmaceutical
announced last month it has partnered
with private equity firm CDH Investments
to acquire Australian liver cancer
treatment firm Sirtex Medical for
US$1.4bn.› CHINA RENAISSANCE PLANS IPOCHINA RENAISSANCE GROUP , an investment bank
led by one of the country’s most famed
rainmakers, aims to raise as much as
US$800m in a Hong Kong IPO, according
to people with direct knowledge of the
matter.
Beijing-based China Renaissance plans to
raise between US$600m–$800m, the people
said.
It is targeting a valuation of between
US$4bn and US$5bn, said one of the people.
Goldman Sachs and ICBC International are joint
sponsors for a listing tentatively scheduled
for October.
Bao, 47, who has previously worked at
Morgan Stanley and Credit Suisse, has been
described as one of the best-connected
bankers in China.
He plans to use part of the proceeds
to develop the firm's asset management
business and to expand into markets such
as the United States and South-East Asia,
said the person.› FINGERTANGO LAUNCHES IPOFINGERTANGO , a mobile game developer in
China, plans to raise up to HK$1.6bn from a
Hong Kong IPO.
The company is selling 500m shares at an
indicative price range of HK$2.07–$3.27.
The deal is set to price on June 29.
The company plans to use the proceeds
for business development and working
capital.
China Securities International is the sole
sponsor and sole global coordinator. The
bank is also joint bookrunner with Capital
CSC Securities , Head & Shoulders Securities ,
Morton Securities , Oceanwide Securities and
Yuanta Securities (Hong Kong).› GAME ON FOR 7ROAD IPOChinese online gaming developer 7ROAD has
opened the book for a Hong Kong IPO of up
to HK$1.48bn.
The company plans to sell about 667m
new shares at an indicative range of
HK$1.50–$2.22 each.An over-allotment
option of 100m shares is offered.
Two cornerstone investors will take up
a combined US$40m or about 25% of the
pre-shoe deal size. They are ZhongHua
Financial for US$30m and Shengqu
Technology Korean for US$10m.
About 30% of the proceeds will fund
R&D to develop proprietary online games
and another 30% will be used to invest
or acquire other overseas or China-based
popular internet operators. The rest will be
for general corporate purposes.
The shares will price on July 11 and be
listed on July 18.
CCB International and GF Securities are joint
sponsors.› GANFENG PRE-MARKETS US$1BN IPOShenzhen-listed GANFENG LITHIUM has kicked
off pre-marketing for a Hong Kong IPO of
about US$1bn, according to people close to
the deal.
The company is tentatively looking to
sell 14.25% of its enlarged share capital pre-
greenshoe, and 16.04% post-greenshoe.
The initial split for the institutional
tranche and Hong Kong retail offering is
94% and 6%.
Proceeds will be used for upstream
mergers and acquisitions, output
expansion, and research and development,
among other things.
Citigroup is sole sponsor for the float. CICC
and Deutsche Bank are also working on the
transaction.› INKE LAUNCHES HK$1.5BN IPOChinese live video streaming operator
INKE has started bookbuilding to raise
HK$1.16bn–$1.51bn from a Hong Kong IPO.
The company is selling 302m shares, or
15% of the of the enlarged share capital, at
an indicative range of HK$3.85–$5.00 per
share.
There is an overallotment option of 45m
primary shares.
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