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Thursday, September 13, 2018, 11:48
China Renaissance seeks up to US$377m in Hong Kong IPO
By Bloomberg
Thursday, September 13, 2018, 11:48 By Bloomberg

The Hong Kong Stock Exchange flag (center) flies outside the HKEx headquarters at Exchange Square in Hong Kong on Oct 6, 2017. (ANTHONY WALLACE / AFP)

China Renaissance Holdings Ltd, the boutique investment bank focused on new-economy deals, is seeking to raise as much as US$377 million in its Hong Kong initial public offering.

READ MORE: Red hot HK IPO market is cooling as retail buyers flee

The Beijing-based firm is offering 85 million shares at HK$31.80 to HK$34.80 apiece, according to terms for the deal obtained by Bloomberg on Thursday. Three cornerstone investors including Alipay, the digital payments company backed by billionaire Jack Ma , have agreed to invest about US$125 million combined, the terms show.

The company plans to price the offering Sept 19 and begin trading Sept 27

China Renaissance, founded in 2005 by former Morgan Stanley banker Bao Fan, is an early investor in a number of Chinese technology companies including restaurant review and delivery giant Meituan Dianping.

Alipay and Snow Lake Capital have each committed to purchase about US$50 million of stock in China Renaissance’s offering, according to the terms.

China Renaissance plans to use 40 percent of the proceeds to expand its investment banking operations, the terms show. Another 20 percent will go toward its investment management unit, while 20 percent will be used to develop its wealth management business. The remainder will be used for technology infrastructure spending and general corporate purposes.

ALSO READ: HK defies market slump with record summer IPO haul

The company plans to price the offering Sept 19 and begin trading Sept 27. Goldman Sachs Group Inc and ICBC International Holdings Ltd are joint sponsors of the offering, while China Renaissance is acting as sole financial adviser, according to a preliminary prospectus.


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