Since cancelling the bond, DunAn has
been trying to raise funds from asset sales.
It had Rmb12.5bn in debt coming due
within a year and Rmb9.7bn thereafter,
according to its latest interim report.
Hangzhou Minze obtained a Rmb450m
eight-year financing from ICBC and China
Citic Bank back in July 2014.
That deal paid an interest margin of
110% of the PBoC rate and would be repaid
in eight annual unequal instalments. The
parent DunAn provided a guarantee and
the loan was also secured by land and
commercial properties.
EQUITY CAPITAL MARKETS
› ESR MANDATES THREE FOR IPO
ESR, a pan-Asia logistics real estate
developer, owner and operator, has
mandated three banks as joint sponsors to
arrange a Hong Kong IPO of about US$1.5bn
in 2019, according to people familiar with
the situation.
The three banks are Bank of America Merrill
Lynch, CLSA and Deutsche Bank, said the
people. Credit Suisse and Goldman Sachs will
also join as joint global co-ordinators.
IFR reported in July that ESR, backed by
private-equity firm Warburg Pincus, was
in discussions with potential advisers for a
planned IPO.
ESR and Warburg Pincus both declined to
comment on the mandate.
ESR, headquartered in Hong Kong, was
formed from the merger of e-Shang and
Redwood in January 2016. e-Shang was
co-founded by Warburg Pincus and two
entrepreneurs, Sun Dongping and Jeffrey
Shen, in 2011.
According to ESR’s website, its investors
include APG, Canada Pension Plan
Investment Board, Goldman Sachs, PGGM,
Ping An and SK Holdings.
In May, Chinese online retailer JD.com
invested US$306m in ESR. In June, ESR
said it had closed a pre-IPO investment
from Citic Securities One-Belt-One-Road
fund, a private-equity investment fund of
CLSA, without disclosing the investment
amount.
According to ESR’s website, the company
manages over 9 million square metres
of gross floor area in projects owned and
under development across China, Japan,
Singapore, South Korea and India.
› HANSOH PHARMA PLANS US$1.5BN IPO
Chinese drugs maker HANSOH PHARMACEUTICAL
has filed for a Hong Kong IPO that could
raise US$1bn–$1.5bn, according to people
close to the deal.
The float is expected by the end of the
year, said the people.
Citigroup and Morgan Stanley are the joint
sponsors.
Hansoh first planned to list in 2016 in
a float of up to US$1.5bn led by Morgan
Stanley and UBS. The deal, however, did
not proceed.
Hansoh has 13 main products focusing
on the central nervous system, oncology,
anti-infectives and diabetes.
The company posted a net profit of
Rmb1.04bn (US$152m) for the six months
ended June 30 2018, up 34% year on year,
according to a regulatory filing. Its 2017 net
profit was Rmb1.6bn.
Hansoh founder Zhong Huijuan and
her daughter Sun Yuan own a 78% stake
in the company. Zhong is the wife of
Sun Piaoyang, who owns a 24% stake in
Shanghai-listed Jiangsu Hengrui Medicine,
the largest pharmaceutical company in
Lianyungang.› HAIDILAO PRE-MARKETS IPOHAIDILAO INTERNATIONAL, one of China’s most
popular hotpot restaurant chains, started
pre-marketing a Hong Kong IPO of up to
US$1bn last Monday.
The company is planning to sell 8.01% of
its enlarged share capital in the base deal,
and 9.10% if the greenshoe is exercised in
full.
Of the shares on offer, 91% will be sold
to international investors and 9% to retail
investors.
The company plans to start bookbuilding
for the deal on September 10 and price it
on September 17.
The restaurant operator plans to use
about 60% of the proceeds to finance its
expansion and about 20% to develop new
technology, while the remainder will be
used to repay loans and replenish working
capital.
CMB International and Goldman Sachs are
joint sponsors of the proposed IPO.
Founded in 1994, Haidilao owns and
operates 320 restaurants, of which 296 are
in the PRC and 24 in Taiwan, Hong Kong,
Singapore, South Korea, Japan and the US.
The company posted a 2017 profit
of Rmb1.19bn, up 22% year on year. Its
revenue rose 36% to Rmb10.64bn.› FOSUN TOURISM PLANS HK IPOFOSUN TOURISM, a unit of Fosun International,
has filed for a Hong Kong IPO to raise
US$500m–$700m, according to people close
to the deal.
CLSA, Citigroup and JP Morgan are the joint
sponsors of the deal.
Fosun Tourism operates resorts throughClub Med and Club Med Joyview. It also
develops and operates tourism destination
Atlantis Sanya and has formed a joint
venture with tour operator Thomas Cook.
According to the filing, Fosun Tourism
posted a loss of Rmb135m for the first half
of 2018, compared with a loss of Rmb189m
in the same period of 2017.
Taking into account the cost of acquiring
Club Med, the pre-operating expenses of
Atlantis Sanya, the interest owed to related
companies prior to the reorganisation and
equity-settled share-based payments, the
company posted an adjusted net profit of
Rmb134m for the first half of 2018.
Fosun, co-founded by Chinese billionaire
Guo Guangchang, is one of China’s most
acquisitive overseas dealmakers.› ENTERTAINMENT PLUS FILES FOR IPOTencent-backed ENTERTAINMENT PLUS, China’s
biggest online seller of film tickets, has
filed for a Hong Kong IPO to raise about
US$800m–$1bn, according to people close
to the deal.
Bank of America Merrill Lynch and Morgan
Stanley are joint sponsors for the deal.
Entertainment Plus operates the popular
movie-ticketing apps Maoyan and Gewara
and also distributes films.
According to the filing, the company
posted a loss of Rmb231m for the first half
of 2018, compared with a loss of Rmb118m
a year earlier.
Monthly active users averaged 133.5
million in the first half of 2018, according
to the filing.
Chairman Wang Changtian owns a 48.8%
stake. Chinese internet giant Tencent has
a 16.27% stake while online food delivery-
to-ticketing services provider Meituan
Dianping has an 8.56% stake.› QUTOUTIAO LAUNCHES NASDAQ IPOChinese news aggregator QUTOUTIAO has
started bookbuilding for a Nasdaq IPO of
US$144m.
The company, which counts internet
giant Tencent Holdings as a shareholder, is
selling 16m American depositary shares in
an indicative price range of US$7–$9 each.
The price range represents a pre-shoe 2019
price-to-sales ratio of 1.84x–2.37x and a
2020 P/E of 14.7–18.9.
The IPO size is around half of the
US$300m filed earlier by the company with
the SEC.
Books will close on September 13 and
pricing is slated for the same day.
Qutoutiao, which means “fun headlines”
in Chinese, allows users to create
customised feeds of articles and short
videos from third-party sources. As of July,