China Renaissance completes first steps towards Hong Kong IPO, seeks up to US$400M

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China Renaissance completes first steps towards Hong Kong IPO, seeks up to US$400 million
The investment bank will begin the investor education phase next week, followed by roadshows in September

Laura He
PUBLISHED : Thursday, 06 September, 2018, 11:47pm
UPDATED : Friday, 07 September, 2018, 3:12pm

Investment bank China Renaissance, a major investor in tech start-ups, has completed preliminary steps towards an initial public offering in Hong Kong, in which it is seeking to raise as much as US$400 million.

The firm, which filed its listing application in June, has passed the listing hearing and will begin pre-deal investor education next week, during which analysts discuss the company’s valuation with potential investors. That will be followed by a series of international roadshows starting in mid-September, according to several people familiar with the matter.

The company is seeking a valuation of between US$3 billion and US$4 billion and is looking to raise between US$300 million and US$400 million, the people said. China Renaissance declined to comment.

Founded in 2004 by Bao Fan, a former Morgan Stanley and Credit Suisse banker, China Renaissance has advised on and invested in a number of high-profile mergers and acquisitions by Chinese technology start-ups, including those between Meituan and Dazhong Dianping and between Didi and Kuaidi, as well as the acquisition of Mobike by Meituan.

More details in https://www.scmp.com/business/companies/...o#comments

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Alipay writes US$50 million cheque as China Renaissance prepares to raise up to US$377 million in Hong Kong IPO
Chinese investment bank plans to issue 85 million shares at between HK$31.8 and HK$34.8 per share

Laura He
PUBLISHED : Thursday, 13 September, 2018, 12:57pm
UPDATED : Thursday, 13 September, 2018, 4:39pm

Investment bank China Renaissance, which has advised on a number of high-profile technology mergers and acquisitions, has set the pricing range for its Hong Kong IPO with the aim of raising as much as HK$2.96 billion (US$377 million).

The company plans to issue 85 million shares between HK$31.8 and HK$34.8 per share, before the exercise of a “greenshoe” or over-allotment option, according to information about the initial public offering’s terms obtained by the South China Morning Post.

If it exercises the greenshoe option, the fundraising value could rise by up to 15 per cent to HK$3.4 billion.

China Renaissance has secured US$125 million from three cornerstone investors. Online payments company Alipay, part of the Ant Financial business controlled by Alibaba Group Holding executive chairman Jack Ma, has agreed to invest US$50 million. Snow Lake Funds, an Asian alternative investment manager, will put in US$50 million. LGT Group Foundation, a European private wealth and asset management firm, will invest US$25 million.

Founded in 2004 by Bao Fan, a former Morgan Stanley and Credit Suisse banker, China Renaissance has advised on and invested in a number of high-profile mergers and acquisitions by Chinese technology start-ups, including those between Meituan and Dazhong Dianping and between Didi and Kuaidi, as well as the acquisition of Mobike by Meituan.

It currently has three principal business lines — investment banking, investment management, and Huajing Securities, the onshore securities platform that has licences to offer underwriting, sales, trading, brokerage, and asset management services on the mainland.

“Huajing Securities will be a future business focus for us,” Bao said on Thursday at the company’s investor presentation in Hong Kong.

But Bao hopes to serve the country’s new generation of entrepreneurs and their companies “through their life cycle”, offering comprehensive services such as connecting companies at early stage with investors, advising them on M&A transactions, providing equity underwriting services for these firms to go public, subsequent capital market work after IPOs, as well as asset and wealth management.

Although Huajing currently only contributes 14 per cent to total revenues, Bao said the onshore securities unit is crucial in providing “full life-cycle coverage” to China’s new economy sectors.

More details in https://www.scmp.com/business/companies/...e-prepares