COUNTRY REPORT CHINAit had 48.8 million monthly active users
and 17 million daily active users who spent
55 minutes on average on the app per day.
The company posted a net loss of
Rmb514m for the first six months of this
year. It lost Rmb95m during the whole of
2017 and Rmb11m in 2016.
Co-founders Eric Siliang Tan and Lei
Li respectively own 39% and 10.2% of the
company. Tencent has a 7.8% stake.
Citigroup and Deutsche Bank are leading the
transaction with China Merchants Securities
and UBS.
› ZAI LAB BUILDS WAR CHEST
Nasdaq-listed Chinese biotech company ZAI
LAB has raised US$150m from a primary
follow-on offering.
The Shanghai-based company sold 7.5m
American depositary shares at US$20 each.
The price represents a discount of 1.1% to
Zai Lab’s close of US$20.22 last Wednesday.
The stock has fallen 11% since the company
announced the follow-on offering on
August 31.
The books were multiple times covered
with about 100 investors participating. The
top five investors took more than 50% of the
deal and the top 10 took more than 70%.
There is a 15% greenshoe for the deal.
Citigroup, JP Morgan, Jefferies and Leerink
are the joint bookrunners.
Zai Lab plans to use the funds raised for
advanced clinical trials, working capital and
general corporate purposes.
The company, which develops drugs for
cancer, autoimmune and infectious diseases,
was co-founded in 2014 by Samantha Du, a
former Pfizer research scientist.
› MIDEA REAL ESTATE PRE-MARKETS IPO
MIDEA REAL ESTATE started pre-marketing last
Thursday for a Hong Kong IPO of up to
US$500m, said people close to the deal.
The company is the property arm of
Shenzhen-listed appliance maker Midea
Group.
BNP Paribas and CLSA are joint sponsors.
According to a regulatory filing, the unit
posted profit of Rmb679m for the three
months ending March 31 2018, up 79% year
on year. It posted profit of Rmb1.89bn in- As of March 31 2018, it had 117 projects
in 33 cities in China, with a focus on the Pearl
River delta and the Yangtze River delta.
› BOOKS COVERED FOR 111 IPOBooks for 111 ’s Nasdaq IPO of up to US$149m
have been covered, according to people
close to the deal.
The Chinese online pharmacy and health
service platform is selling 9.3m primary
American depositary shares in an indicative
price range of US$14.00–$16.00 each, with a
greenshoe option of 15% of the base deal.
The range represents price-to-sales
multiples of 2.2–2.5 in 2019 or 1.2–1.4 in
2020, post-shoe. There is also an indication
of interest for up to $20m of the public
float from existing shareholders.
The deal will price on September 11.
As well as its online retail business for
pharmaceutical products, 111 operates
an internet service where doctors provide
medical consultations and prescriptions to
patients.
As of June this year, there were
approximately 15 million registered userson the company’s flagship website 111.
com.cn and mobile applications.
The company posted a net loss of
Rmb129.4m and revenue of Rmb730.9m for
the first six months of this year.
CICC, Citigroup and JP Morgan are the leads
on the float.› BOOKS COVERED FOR NIO’S IPOBooks for the up to US$1.32bn NYSE IPO
of Chinese electric vehicle startup NIO have
been covered, according to people close to
the deal.
The Tencent-backed company is selling
160m American depositary shares in an
indicative price range of US$6.25–$8.25
each.
The range gives a pre-money pre-shoe
market capitalisation of US$7bn–$9.2bn
to the company. It also represents a 2019
price-to-sales ratio of 2.61–3.44.
Pricing is slated for September 11.
Goldman Sachs, JP Morgan and Morgan
Stanley are leading Nio’s float with Bank of
America Merrill Lynch, Credit Suisse, Citigroup,
Deutsche Bank and UBS.› CITIC PE TRIMS LUYE PHARMA STAKECitic Private Equity has raised HK$788m
(US$100m) from the sale of part of its
stake in Chinese drug producer LUYE PHARMA
through a block trade.
The Chinese PE fund, through its unit
CPE Greenery, sold 111m shares at HK$7.1
each last Monday, representing a discount
of 4.8% to the HK$7.46 closing price.
Sole bookrunner UBS marketed the deal in
an indicative price range of HK$7.08–$7.20.IS YOUR COMPANY
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