The company, which delisted from
China’s third board earlier this year, is
WORKINGûWITHûADVISERSûONûTHEûPROPOSEDûmOAT
Founded in 2011, Ruhnn discovers
potential internet celebrities and helps to
promote them. After being discovered, the
celebrities – commonly known as ‘wang
hong’ in Chinese – sell fashion products
through e-commerce platforms such as
Taobao.
Zhang Dayi, an internet celebrity and a
FASHIONûINmUENCERûWORKINGûWITHû2UHNN ûHASû
8.78m fans on Weibo, a Chinese
microblogging website.
Chinese e-commerce giant Alibaba Group
invested Rmb300m in Ruhnn in 2016,
valuing the company at Rmb3.1bn
(US$445m). SAIF Partners and Legend
Capital have also invested in the company,
according to Ruhnn’s website.
According to Ruhnn’s 2017 interim report,
the company posted revenue of Rmb305m
FORûTHEûlRSTûHALFûOFû ûUPûûYEAR
ON
year. It posted a net loss of Rmb15.3m in the
lRSTûHALFûOFû ûVERSUSûAûNETûLOSSûOFû
Rmb3.95m in the same period of 2016.
IDREAMSKY SEEKS LISTING APPROVALMobile game developer IDREAMSKY TECHNOLOGY
sought listing approval last week for its
US$200m–$300m Hong Kong IPO, according
to people close to the deal.
The Shenzhen-based company posted a
NETûPROlTûOFû2MBMû53M ûINû û
VERSUSûAûNETûPROlTûOFû2MBMûINû û
ACCORDINGûTOûAûREGULATORYûlLING
Tencent Holdings currently owns a
20.65% stake in the company.
CICC, China Merchants Securities and Credit
Suisse are the joint sponsors.
PICC KICKS OFF A-SHARE IPOHong Kong-listed PEOPLE’S INSURANCE COMPANY
(GROUP) OF CHINA conducted pricing
consultations last Thursday for a Shanghai
IPO, according to a company
announcement. The company is set to
announce the price of the offer on
November 5 and books will open for a day
on November 6.
In view of current market conditions,
PICC Group said earlier it would cut the
number of shares in its A-share IPO and
introduce strategic investors to support the
deal.
PICC Group will now sell up to 1.8bn
A-shares, instead of the up to 2.3bn A-shares
approved by regulators. The new number
puts the value of the listing at up to
Rmb5.24bn (US$752m), based on the close
of HK$3.28 for its Hong Kong-listed shares
last Monday, equivalent to Rmb2.91 per
share.
Besides cutting the deal size, PICC Group
also plans to introduce a strategic placing
tranche, a rare feature in A-share IPOs.
In June, Foxconn Industrial Internet
named 20 strategic investors, including
Alibaba Group, Baidu and Tencent, for its
Rmb27.12bn Shanghai IPO. The Rmb4bn
IPO of Shaanxi Coal in 2014 also had a
strategic tranche.
The strategic tranche in A-share IPOs,
which is similar to cornerstone investments
in overseas markets, is designed to ease the
IMPACTûOFûSIZEABLEûmOATSûONûTHEûBROADERû
market.
CICC and Essence Securities are joint
sponsors on the PICC Group A-share listing
and joint bookrunners with Citic Securities
and Goldman Sachs Gao Hua Securities.
Proceeds will be used for working capital.KOOLEARN TO PRE-MARKET IPOKOOLEARN TECHNOLOGY, an online education
service provider under New York-listed New
Oriental, plans to start pre-marketing a
Hong Kong IPO of US$200m–$300m in the
second half of November, according to
people close to the deal.
The company has already won listing
approval from the Stock Exchange of Hong
Kong.
CICC, Citigroup and Morgan Stanley are joint
SPONSORSûONûTHEûPROPOSEDûmOAT
Founded in 2005 by NYSE-listed Chinese
private education service New Oriental, the
subsidiary offers courses for students at
college, K-12 and pre-school level education.
Currently, New Oriental is Koolearn
Technology’s controlling shareholder with a
66.72% stake, followed by internet giant
Tencent Holdings’ 12.06% stake.
For the nine months ended February
û+OOLEARNûPOSTEDûAûNETûPROlTûOFû
Rmb80m (US$11.9m), up from Rmb69m in
the same period a year earlier, according to
AûlLINGû!SûOFû&EBRUARYû ûABOUTûû
million students had enrolled for the
company’s courses.
The company will use the proceeds to
invest in staff recruitment and training as
well as improving teaching courses’
capabilities and technology infrastructure.
The remainder will be used for sale and
marketing activities, general corporate
purposes and possible future acquisitions.CHENGDA BIOTECH FILES HK IPONEEQ-listed LIAONING CHENGDA BIOTECHNOLOGY, a
SUBSIDIARYûOFû,IAONINGû#HENGû$A ûHASûlLEDû
with the Stock Exchange of Hong Kong for a
main board listing of US$400m–$500m,
people with knowledge of the deal said.
The company develops, manufactures and
markets vaccines. Its main products includehuman rabies and Japanese encephalitis
vaccines, and it has more than nine products
in the pipeline.
!NûEARLIERûCOMPANYûlLINGûSAIDûITûPLANSûAû
FREE
mOATûOFûNOûMOREûTHANûûPRE
greenshoe. There is a 15% greenshoe.
#HENGDAû"IOTECHûPOSTEDûAûPROlTûOFû
Rmb283m (US$40.6m) for the six months
ended June 30, up 10% from Rmb257m a
YEARûAGOû)TûHADûNETûPROlTSûOFû2MBMûINû
2017 and Rmb513m in 2016.
Liaoning Cheng Da, whose shares are
traded on the Shanghai Stock Exchange,
owns a 60.54% stake in the company.
Chengda Biotech is in a queue of
companies lining up to take advantage of a
new arrangement that makes it easier for
stocks traded on China’s third board to be
listed in Hong Kong.
The April 21 agreement says NEEQ-listed
companies can list in Hong Kong provided
they meet the city’s listing requirements.
They do not need to delist from the NEEQ to
pursue a Hong Kong IPO.
Chengda Biotech was one of 11 third-
board companies that attended the signing
ceremony of the agreement in Beijing,
according to local media.
CLSA and GF Capital Hong Kong are joint
sponsors.360 FINANCE FILES FOR NYSE IPO360 FINANCE, an online consumer lending
PLATFORM ûHASûlLEDûWITHûTHEû3ECURITIESûANDû
Exchange Commission to raise up to
US$200m in an IPO on the NYSE.
The Shanghai-based company was
founded in 2016 to provide digital loans to
small and medium-sized Chinese
enterprises. As of September 30, it had
facilitated over Rmb94.4bn (US$14.3bn) of
loans for its 6.4m clients.
The lender posted a loss of Rmb572m for
the six months ended June 30, much wider
than Rmb67m a year earlier.
bout 40% of the IPO proceeds will be used
for brand promotions, 30% for R&D and
internal training and the remaining 30% for
general corporate purposes.
û&INANCEûISûTHEûlNANCEûPARTNERûOFûû
Group, formerly known as Qihoo 360
Technology, a Chinese software maker that
delisted from the NYSE in 2016.
Citigroup and Goldman Sachs are the joint
bookrunners on the deal.XINYI ENERGY AWAITS APPROVALShareholders of Hong Kong-listed solar farm
operator Xinyi Solar will meet on November
21 to vote on the proposed spin-off of XINYI
ENERGY.
Xinyi Energy sought listing approval from
the Stock Exchange of Hong Kong onEQUITIES ASIA-PACIFIC