The company is selling 236m primary
SHARESûFORûAûûFREE
mOAT ûATûANûINDICATIVEû
price range of HK$12.50–$14.00 each. The
range gives the company a pre-greenshoe
market capitalisation of US$1.9bn–$2.1bn.
There is a 15% greenshoe.
Innovent has secured 10 cornerstone
investors for a total US$245m. They include
53ûVENTUREûCAPITALûlRMû3EQUOIAû53M û
Value Partners (US$30m), Prime Capital
(US$30m) and Cormorant (US$25m). Four
other investors – Capital Group, Temasek,
Lilly Asia and Greenwoods – have each
committed US$20m. Vivo Capital committed
US$15m and Rock Springs Capital US$5m.
The deal will be priced around October 23
and the company is due to be listed on
October 31.
Innovent, which already counts Fidelity
and Temasek among its shareholders, has
developed four core antibody products that
are in late-stage clinical development, with
13 other antibody drugs in the pipeline. The
antibody products are aimed at treating
multiple types of cancers, autoimmune
disorders and other diseases.
China Merchants Securities, Goldman Sachs, JP
Morgan and Morgan Stanley are joint sponsors
for the IPO.
TWO CLEARED FOR A-SHARE IPOsTwo Chinese IPO candidates, XINJIANG
COMMUNICATIONS CONSTRUCTION GROUP and YUSYS
TECHNOLOGIES, have received approval from
the country’s securities regulator to raise up
to a combined Rmb900m (US$130m) from
A-share IPOs.
The China Securities Regulatory
Commission did not provide an individual
breakdown of each transaction.
Xinjiang Communications Construction
Group, which provides highway, bridges
and other engineering construction
services, aims to sell 65m shares on the
small and medium-sized enterprise board in
Shenzhen.
Proceeds will be used to upgrade
construction equipment and to fund a
bridge engineering project.
Changjiang Financing Services is the sole
sponsor of the deal.
Beijing-based Yusys Technologies plans to
sell 40m shares on the ChiNext board.
The IT solutions company provides services
TOûlNANCIALûINSTITUTIONS ûSUCHûASûCONSULTING û
software development and implementation,
and system maintenance and integration.
CICC is the sole sponsor for the deal.
NIU TRIMS IPO SIZE AND PRICEElectric scooter maker NIU TECHNOLOGIES has
raised US$63m from a Nasdaq IPO after
cutting by 16% the number of American
depositary shares on offer to 7m, from 8.3m.
The deal was priced at the bottom of a
revised guidance range of US$9.00–$10.00,
down from the original US$10.50–$12.50
indicative range, according to a term sheet.
On pricing, the original sizing would have
totalled US$74.7m.
4HEûlNALûPRICEûREPRESENTSûAûûPRICE
TO
sales ratio of 1.87. There is a 15% greenshoe.
Venture backer GGV Capital, an 11.2% pre-
IPO holder, committed US$10m of the deal. The
other investors participating were mainly
Chinese hedge funds and a handful of US hedge
funds. A couple of private wealth funds were
also involved, a person close to the deal said.
Niu Technologies, whose shares debuted
last Friday, has sold 431,500 electric
scooters, primarily in China and Europe.
Approximately US$24m of proceeds will
be used to expand and upgrade
factories,US$24m to fund R&D, and US$12m
to expand its distribution, and for general
purposes. These numbers were cut from
US$30m, US$30m and US$15m respectively
at the time of the IPO launch.
Founded in 2014, Niu posted a net loss of
2MBMû53M ûFORûTHEûlRSTûSIXûMONTHSû
of this year, wider than a Rmb97m loss the
year before. It had an annual loss of
Rmb185m in 2017.
Niu is seeking to differentiate itself from
competitors with its higher margins. The
company accounts for 39.5% of electric
scooter sales volume in China, though it has
just a 26% market share (by number of
scooters sold).
Citigroup and Credit Suisse were the joint
bookrunners.INDIA
EMAMI CEMENT FILES FOR Rs10bn IPOEMAMI CEMENTûHASûlLEDûTHEûDRAFTûPROSPECTUSû
for an IPO of Rs10bn (US$135m) with the
Securities and Exchange Board of India and
is planning a launch early next year.
Primary and secondary shares for Rs5bn
each will be sold in the IPO. Founders Radhe
Shyam Agarwal, Radhe Shyam Goenka,
Manish Goenka, Aditya Vardhan Agarwal,
Harsh Vardhan Agarwal, Bhanu Vyapaar,
Diwakar Viniyog and Suntrack Commerce
are the vendors of the secondary shares.
Emami Cement’s net loss widened to
2SMûINûTHEûlNANCIALûYEARûTHATûENDEDûONû
March 31 2018 from Rs381m in 2017. It
attributed the losses to investments in new
capacity.
It is part of the Emami Group, one of
India’s leading personal care product
makers.
Axis Capital, CLSA, Edelweiss, IIFL Holdings
and Nomura are the bookrunners.JAPAN
SOFTBANK HIRES BANKS FOR MEGA IPOSoftBank Group has hired Goldman Sachs,
Nomura, Mizuho, Deutsche Bank and SMBC Nikko
as lead underwriters of the more than ¥2trn
(US$17.6bn) IPO of its telecoms unit SOFTBANK
CORP, Reuters reported on October 12.
Goldman Sachs and Nomura have been
retained to work on the international portion
of the offering, a person with knowledge of
the situation told IFR separately.
Six banks are advising as domestic lead
managers. They are Daiwa, Nomura, Mitsubishi
UFJ Morgan Stanley, Mizuho, SBI and SMBC
Nikko.
SoftBank Group plans to seek approval
from the Tokyo Stock Exchange on
November 5, the date of its second-quarter
earnings announcement, according to
DealWatch, IFR’s sister publication in Japan,
citing people familiar with the deal.
SoftBank Group has set a target listing
date of December 19 for SoftBank Corp.
Despite the size of the offering, most of
the shares are expected to be sold in Japan
and the international tranche will be
relatively small.
4HEû3OFT"ANKû#ORPûmOATûISûEXPECTEDûTOû
rival the ¥2.1trn 1998 listing of NTT Mobile
Communications Network, or NTT DoCoMo,
as Japan’s largest IPO.
It is set to be the world’s largest IPO since
Chinese e-commerce giant Alibaba Group’s
US$25bn US listing in 2014.
3OFT"ANKû'ROUPûlLEDûAûPRELIMINARYûLISTINGû
application in July for the mobile unit,
without giving further details on the timing
or size of the deal. SoftBank Corp will remain
a consolidated subsidiary after the listing.HULIC REIT SET FOR ¥21.2bn FOLLOW-ONHULIC REIT plans to raise up to ¥21.2bn
(US$189.9m) through a follow-on offering,
based on a minimum 2.5% discount to the
¥162,500 closing price of October 12.
The Japanese real estate investment trust,
WHICHûMAINLYûFOCUSESûONûOFlCEûBUILDINGSû
and commercial facilities, is offering
134,200 units at a discount range of 2.5%–5%
to the market price.
There is a 5% greenshoe of 6,800 units.
The international offering will take up 20%
of the deal, with 80% allocated to domestic
investors. The split for domestic institutional
and retail buyers is 25% versus 75%.
The issuer is subject to a 90–day lock up
period.
The REIT intends to use the proceeds
to acquire two properties and could
purchase a third if the greenshoe is
exercised. Excess funds will be held as cashEQUITIES ASIA-PACIFIC