The deal will price on September 27 after
the US market closes.
Two of the mobile internet company’s
big shareholders, Qiming Venture Partners
and Sequoia Capital China, have put in for
US$10m of the deal in total.
CooTek, whose apps boast a base of
132.6m daily active users across 240
countries, increased its revenue 450% year
on year to US$50.3m in H1 2018 and posted
a profit of US$3.5m over the same period.
The company mainly monetises its apps
through mobile advertising.
Bank of America Merrill Lynch, Credit Suisse,
Citigroup and KeyBanc Capital Markets are
leading the IPO.
› X FINANCIAL COMPLETES NYSE IPO
Consumer finance company X FINANCIAL has
raised US$104.5m from a NYSE IPO.
The Chinese company sold 11m primary
American depositary shares at US$9.50
each, near the low end of an indicative
price range of US$9–$11 each.
The final price range represents a 2019
P/E of about 7x before the greenshoe is
exercised.
Deutsche Bank and Morgan Stanley were the
bookrunners.
X Financial, which has a strategic
partnership with online insurance provider
Zhong An, reported US$279.3m of revenues
and US$79.5m of net income in the first
half of 2018, already surpassing the
US$270m of revenues and US$62.5m of net
income in all of last year.
› CHINA RENAISSANCE PRICES AT BOTTOM
Investment bank CHINA RENAISSANCE has
priced its HK$2.7bn IPO at the bottom of
the indicative price range, people close to
the deal said.
The company sold 85m primary shares,
representing 15.5% of its enlarged capital,
at HK$31.8 each versus the indicative price
range of HK$31.8–HK$34.8. The final price
represents a pre-shoe 2019 P/E of 14.4 and a
2020 P/E of 10.1. There is a 15% greenshoe.
The company could have priced the deal
higher but wanted to leave something on
the table, said another person close to the
deal. A spokesperson at China Renaissance
declined to comment on the deal’s final
price.
Books were five times covered. Investors
backing the deal included the People’s
Insurance Company of China, Coatue
Management, the Capital Group, Ontario
Teachers’ Pension Plan, JD Finance and
Hillhouse Capital Group.
Three cornerstone investors earlier
agreed to take up a combined US$125m,
or 36.3% of the deal. They are Alipay (Hong
Kong), a subsidiary of Ant Financial, for
US$50m, Asian alternative investment
management firm Snow Lake, also for
US$50m, and private banking and asset
management group LGT for US$25m.
The shares are due to start trading on
September 27.
China Renaissance, which focuses on
new economy businesses, was founded by
Bao Fan in 2005.
Fan, who previously worked at Morgan
Stanley and Credit Suisse, is one of the
country’s most famed rainmakers in the
technology sector.
China Renaissance posted a loss of
US$66m for the three months ended March
31 2018, compared with a loss of US$2.5m
over the same period of 2017. It lost
US$13.5m in 2017.
Goldman Sachs and ICBC International are
the joint sponsors. They are also joint
global coordinators and joint bookrunners
with ABC International and China Renaissance.
There are five other bookrunners.› GREAT WALL SECURITIES TAPS FOR IPOCHINA GREAT WALL SECURITIES began the pricing
consultation last Wednesday for a proposed
Shenzhen IPO to raise up to Rmb1.86bn.
The firm aims to sell up to 310m shares in
the IPO. It will use the proceeds for working
capital, according to a filed prospectus.
The consultation ended Thursday and the
price will be set on September 25.
The books for the deal will open on
September 26.
Great Wall posted a 2017 net profit of
Rmb863m on revenue of Rmb2.95bn.
China Securities is the sponsor of the float
and joint bookrunner with China Merchants
Securities and Industrial Securities.› BEIJING CAPITAL SCRAPS IPO PLANHong Kong-listed property developer
BEIJING CAPITAL LAND has dropped a planned
Shanghai IPO to raise about Rmb3.8bn.
The company said in a statement it had
applied to the China Securities Regulatory
Commission to withdraw its earlier IPO
application.
The decision was consistent with the
aim of developing the company’s business
and was made after discussions with the
professional parties involved, Beijing
Capital Land said.
It had earlier planned to issue up to
370m A-shares, or about 10.89% of its
enlarged company capital. China Securities
and JP Morgan First Capital Securities were joint
sponsors and joint bookrunners with CICC.
Proceeds were to fund five property
development projects in Beijing, Shanghai
and Tianjin.› QINGDAO PORT CLEARS LISTING HEARINGHong Kong-listed QINGDAO PORT INTERNATIONAL
has been approved by the China Securities
Regulatory Commission in a listing hearing
for a proposed A-share offering in Shanghai.
The company still needs written approval
from the CSRC to proceed with the deal.
Qingdao Port plans to make available not
more than 671m A-shares, or about 10% of
its enlarged capital.
The company could raise Rmb3.3bn from
its A-share sale, based on its closing price of
HK$5.65 in Hong Kong last Wednesday.
The company posted a 2017 net profit of
Rmb3.24bn on revenue of Rmb10.15bn.
Citic Securities is the sponsor of the IPO
and joint bookrunner with UBS Securities
and BOC International (China).
Proceeds will fund Rmb8.48bn of
investment projects, including construction
of crude oil reserve tanks and multi-purpose
berths, as well as procuring equipment and
meeting working capital needs.HONG KONG
SYNDICATED LOANS
› FORTUNE OIL INCREASES LOANFORTUNE OIL PRC HOLDINGS has increased its
three-year loan to US$430m-equivalent
from an initial US$400m target after
attracting 10 banks in general syndication.
UBS was the initial mandated lead arranger
and bookrunner of the facility, while five
other banks joined with the same title.
The deal comprises a HK$1.3884bn
(US$178m) and a US$252m portion, offering
a top-level all-in pricing of 275bp based on
an interest margin of 225bp over Libor and
a 2.65-year average life. The guarantor is
Fortune Oil, the borrower’s parent.
Funds are to refinance a US$380m three-
year term loan the borrower raised in May
2016 and for working capital purposes.
Yuanta Commercial Bank, Bank of East
Asia, China Citic Bank International and
Hang Seng Bank were the MLABs of the
2016 loan, while Morgan Stanley was the
global coordinator, facility and security
agent. That facility paid a top-level all-in
pricing based on a margin of 275bp over
Libor and a 2.65-year average life.
Fortune Oil PRC Holdings, which is
headquartered in Hong Kong, operates
oil and gas projects in China. First Level
Holdings and Vitol Group are among the
company’s largest indirect shareholders.
For full allocations, see http://www.ifrasia.com.