PE-backed China Everbright Water files for HK IPO

According to the prospectus, Everbright Water will use the proceeds from the offering to expand and diversify its portfolio of water treatment projects in China, along with enhancing its core technologies through research and development initiatives and acquisitions. The number of shares offered in the IPO and the pricing have not been announced.

Everbright Water was formed in 2003 to hold the environmental water business of China Everbright Group. It manages a wide range of water projects across China, including water supply, wastewater treatment, sludge treatment and disposal, ecological restoration, and engineering and construction. As of March 2018, the company’s projects had a treatment capacity of more than 5 million tonnes of water per day. It also has projects in Europe and Vietnam.

In 2014 Everbright Water listed in Singapore through a reverse takeover of HanKore Environment Tech Group, with HanKore absorbing Everbright Water’s assets for S$1.2 billion ($877 million) via an allotment of new shares. RRJ and IFC invested the following year, buying around 150 million shares for a total consideration of S$113.5 million and taking a total stake of 4.6%. According to Everbright Water’s most recent annual report, China Everbright is the single largest shareholder in the company, with a stake of about 75% as of March 2018.

Revenue for the year ended December 2017 came to HK$3.6 billion ($458 million), up from HK$2.5 billion the year before. The majority of the revenue growth came in the water environment treatment segment, which rose from HK$1.9 million in 2016 to HK$1.1 billion in 2017, though wastewater treatment remained the highest contributor to revenue with HK$2.3 billion in 2017. Net profit for the same period grew from HK$373 million to HK$581 million.

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• Topics
• Greater China
• Infrastructure
• IPO
• Hong Kong (China)
• Exit
• RRJ Capital
• IFC