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TPG, GIC backed Li Ning closes $238m convertible securities issue

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Li Ning, the Chinese sports brand backed by the Government of Singapore Investment Corporation (GIC) and TPG Capital, had closed a convertible securities issue worth HK$1.85 billion ($238 million). The open offer was over-subscribed with the company receiving applications representing 2.54 times the total amount of securities offered.

According to a regulatory filing, existing investors Viva China, TPG Capital, and GIC will hold approximately 26.1%, 5.6%, 4.3% in the company respectively on a fully diluted basis if all convertible securities are converted into shares in full.

In January, Li Ning saw its stock price drop 13.8% after it announced its plans to raise cash through a convertible securities issue. Viva China- a shareholder as well as a company partially held by Li Ning's founder- have underwritten 60% of the securities with TPG  underwriting the remainder. 

Last February, Li Ning sold RMB750 million ($119 million) in convertible bonds to TPG and GIC, which followed the company's disappointing 2011 revenue projection.

TPG appointed Jin-Goon Kim, who has previously turned around Chinese women's shoe retailer Daphne, to be the executive vice chairman of Li Ning in July last year. Last week, the company appointed Terence Tsang, a former executive of Guess as its chief financial officer.

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