Category: IPO

CDH-backed New Century Healthcare completes US$102 million Hong Kong IPO

New Century Healthcare, a Beijing-based pediatric, obstetric and gynecological healthcare provider backed by Chinese alternative investment firm CDH Investments, has on Wednesday completed a listing on the Hong Kong Stock Exchange.

The company shares were priced at HK$7.36 (US$0.94), that is at the midpoint of the share price guidance it issued for the 120 million shares which were within the range of HK$6.36 to HK$8.36

The hospital group has raised around HK$789 million (US$102 million) via the initial public offering in which it plans to use to open more hospitals and clinics in China’s major cities.

Specifically, the healthcare firm will further expand its coverage in Beijing and other first-tier cities and enhance its ability to provide high-quality medical services, to build up a world-class medical service institution.

“New Century Healthcare is one of the biggest children’s hospital operator in China,” said Huang Jingjing, a managing director at CDH’s innovation and growth fund. “It is a great addition to China’s public hospitals and fills a market void meeting demand from high-end clients.”

Founded in 2002, New Century Healthcare currently owns and operates three leading pediatric clinics in Beijing, including Beijing New Century (BNC) Children’s Hospital, BNC Womesn’s and Children’s Hospital and BNC Harmony Clinic.

The company said in its prospectus it focuses on the provision of mid to high-end women and children’s medical services and said it has accumulated in-depth expertise and experience in the public-private partnership arrangement with public hospitals.

Currently, there are 441 doctors in the group, among which more than 90 percent have obtained the attending physician title and above, possessing at least five years of pediatric outpatient service.

CDH Investments, which previously invested in Ciming Health Checkup Group, Luye Pharma Group Ltd. and a number of healthcare firms in China, held a 16.6% stake in New Century Healthcare before the IPO.

New Century Healthcare recorded earnings of RMB238 million, RMB249 million and RMB258 million from 2013 to 2015, respectively.

By Vivian Foo, Unicorn Media

Fortune Capital-backed furniture maker HomeKoo targets RMB1.8 billion in ChiNext IPO

HomeKoo, a Chinese customized furniture manufacturer backed by Shenzhen Fortune Capital, has obtained regulatory approval to list on ChiNext, the NASDAQ-style bourse of the Shenzhen Stock Exchange.

No financial details of the listing have been determined but it is said that the public offering is looking to sell a total of not more than 2.7 billion shares, to raise RMB 1.8 billion (about US$261 million).

Established in 2004, the Guangzhou-based furniture company is wholly involved in custom-made furniture production, from designing and providing information technology solutions to product sales, as well as developmental and technical services.

Besides, HomeKoo claims that it has incorporated online design services, virtual reality, and mobile internet technology in its manufacturing process to allow large-scale customisation.

Additionally, the company focuses on customised furniture as to meet the demands of the urban consumers, especially Chinese city dwellers who live in small apartments and requires customised furniture to allow for better space utilisation at a relatively low cost.

HomeKoo markets its products via franchised brick-and-mortar stores across the country and an online e-commerce platform At present, the company has two major furniture brands, which are SPZP and Wayes.

Fortune Capital invested RMB70 million (about US$10.2 million) in HomeKoo back in 2009 to help the company expand. At the time of Fortune Capital’s investment, customized furniture held a 10% stake in the overall furniture market in China, and was growing at 20% annually.

The fund raised from the offering will be mainly used for four major aspects, which includes marketing and networking, establishing a one-stop O2O purchase service, creating an intelligent manufacturing production line, and supporting home product strategy.

The company claims that RMB111 million will be used in the construction of a home appliance factory in Foshan, southern China whereby it will be the dedicated modern logistics center to solve the inadequacy of the company’s existing storage capacity.

The modern logistics center will be a three-dimensional automated warehouse, occupying an area of ​10696.47 square meters. The construction period is 18 months, and the logistics storage capacity and product turnover efficiency will be greatly improved after the project is put into production.

By Vivian Foo, Unicorn Media

Bank of Jiujiang seeks to raise US$500 million IPO in Hong Kong

Bank of Jiujiang, a lender in eastern China’s Jiangxi province, plans to raise a US$500 million initial public offering (IPO) in Hong Kong, according to a report from Bloomberg.

Based in a city on the southern banks of the Yangtze River, the Bank of Jiujiang has already begun reaching out to investment banks about the potential listing, in which is scheduled to list in the second half of 2017.

The lender’s move in seeking a Hong Kong listing follows other regional banks, which includes Guangzhou Rural Commercial Bank Co. and Jilin Jiutai Rural Commercial Bank Corp., and is aimed to boost its profile and raise funds for expansion.

According to data compiled by Bloomberg Show, financial institutions have completed US$18.2 billion of first-time share sales in the city last year, accounting for 72 percent of fundraising from new listings in 2016.

Founded in 2000 and operating as an urban commercial bank, Jiujiang Bank currently has 12 branches in China, with 10 of its branches located in the Jiangxi Province while 2 are situated in Guangzhou.

Backers of the Bank of Jiujiang includes the local government, state-owned Beijing Automotive Group Co. and Industrial Bank Co. The lender’s net income fell 0.6 percent in 2015 to 1.78 billion yuan (about US$257 million), according to its annual report.

Details of the IPO are still in deliberations, and there is no certainty that this potential listing will lead to a share sale.

By Vivian Foo, Unicorn Media

China’s New Century Healthcare targets US$129 million in Hong Kong IPO

Beijing-headquartered pediatric hospital operator New Century Healthcare is planning to raise up to HK$1 billion (about US$129 million) in an initial public offer (IPO) at the Hong Kong stock exchange this month.

The BoAML and CICC-sponsored pediatric healthcare provider had launched this IPO last week where 120 million new shares are pitched at a price ranging from HK$6.36 to HK $8.36 each.

According to the IPO prospectus of the company, there is also a potential 15 percent green-shoe option to sell an additional 18 million new shares.

Private equity firms CDH, Tianjin Yanshan Investment Management Co along with others also have a substantial stake in the hospital operator.

At present, New Century Healthcare operates three pediatric clinics in Beijing and since November last year, has diversified into obstetrics and gynecology with the acquisition of the BNC Women’s and Children’s Hospital.

Following this deal, about 20 percent of the proceeds will be allocated to upgrading its existing clinic, along with opening a new hospital and two clinics in other tier-1 cities such as Shanghai and Guangzhou.

Additionally, the company will also use 40 percent of the funds to buy one hospital and five clinics in tier-one cities, the company had announced while launching its IPO on December 29.

China’s growing healthcare expenditure is expected to reach 6.6 percent of the country’s GDP by 2020 with an aging population, increased chronic diseases, and rising disposable incomes are likely to lead to a higher demand for private and mid to high-end healthcare services among Chinese, the company had noted in its IPO prospectus.

Profits last year hit 34 million yuan (about US$5.1 million) on revenues of 116.8 million yuan. For the first six months of the year, profits stood at 31 million yuan on revenues of 226.5 million yuan.

The deal is expected to price on on January 11 while trading in the company’s shares will begin on January 18.

By Vivian Foo, Unicorn Media

Chinese online gaming firm G-bits Network Technology raises US$138 million in IPO

G-bits Network Technology Co. Ltd., a Chinese online gaming company backed by IDG Capital Partners and Fortune Capital, has completed its initial public offering (IPO) on the Shanghai Stock Exchange (SSE), raising an amount of 961 million yuan (about US$138 million).

Upon completing its IPO on the China’s A-share market, the Xiamen-based company is now valued at 5.5 billion yuan (about US$791 million).

The Chinese gaming firm has also set a record being the first online gaming company to complete an IPO on the Chinese A-share market. Other online gaming companies listed on the domestic stock exchanges were via reverse mergers previously.

Founded in 2004, G-bits is one of the leading online game developers in China, developing and producing massive multiplayer online games, which includes Underground Castle, Unbelievable Maze, and virtual reality-enabled games.

Besides, its portfolio also includes Asktao, the company’s first 2D TBS online game, which was approved as the green online game for teenager by China’s Ministry of Culture in 2006.

The company claims to have net earnings of 600 million yuan in 2016, which translates to approximately US$87.2 million

IDG Capital holds over 10% stake in G-bits currently,having invested in its series A funding round back in 2007. While Fortune Capital and the direct investment arm of Ping An Insurance invested 160 million yuan (about US$23 million) in the company in 2011.

By Vivian Foo, Unicorn Media

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