China's PE-backed AsiaInfo files for HK IPO

The draft prospectus does not disclose the size or pricing of the offering, but the company was reportedly planning to raise $500 million via an IPO in the territory as early as January 2016. CITIC Capital, which has about a 34% stake, will remain the single largest shareholder although its position will be reduced to less than 30%.

CITIC led a consortium that took the company private in 2014 when it was listed in the US under the name AsiaInfo-Linkage. The $887 million transaction included participation from CITIC Private Equity, China Broadband Capital (CBC), AlpInvest Partners, Qatar Investment Authority (QIA), and Temasek Holdings. As of last month, CBC, QIA, and Temasek held about 5%, 8%, and 8% stakes, respectively.

Founded in 1993, AsiaInfo offers telecom software and IT services to about one billion subscribers globally. Net proceeds from the US IPO in 2000 came to $127 million. As of 2015, the company had begun operating in data-driven areas, including industrial internet-of-things application, while last year it developed a customer relations management system for China’s national postal service. 

AsiaInfo has cited research by Frost & Sullivan that identified it as the largest business support software and related service provider in China with a 50% market share by revenue in 2017. Annual revenue improved marginally during 2017 to RMB4.9 billion ($723 million). The company posted a profit of RMB318 million for the year, versus a loss of RMB221 million in 2016.

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• Topics
• Greater China
• Support services
• Media
• Technology
• China
• Hong Kong (China)
• CITIC Capital
• Citic Private Equity
• AlpInvest Partners N.V.
• Temasek Holdings
• China Broadband Capital
• IPO