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Carlyle, Milestone, Orchid Asia among cornerstones for China Tenwow IPO

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The Carlyle Group, Milestone Partners and Orchid Asia will participate as cornerstone investors in the proposed Hong Kong IPO of Chinese packed food and beverage producer Tenwow International. The private equity investors will inject a combined of $92.3 million for an 11.4% stake in the company.

The Shanghai-based food maker is currently looking to raise as much as HK$1.5 billion ($203 million), offering 500 million shares priced between HK$3 and HK$3.15 apiece.

According to a listing prospectus, China FNB Investment, owned by Carlyle Asia Growth Partners IV and its affiliate, will pay $47.12 million to acquire approximately 116 million shares at HK$3.08 apiece, being the mid-point of the indicative offer price range. The shares subscription was translated to a 5.81% stake in the company.

Milestone China Opportunities Fund III is on the course to subscribe shares totalling $35.17 million for a 4.32% stake. Orchid Asia V and its affiliate will hold 1.2% in the company for $10 million.

All cornerstone investors will be subject to a six months lock-up period. Details of the final allocation will be disclosed later this month. The company is planning to use the extra capital to expand its production capacity and distribution network into the northeastern and southwestern China.

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