MSPEA-backed AMTD subsidiary to list in US

Financial details of the IPO have not been announced. AMTD International reported its valuation at $1.3 billion last month and AMTD Group indicated in a prospectus that it intended to retain its controlling stake in the subsidiary following the offering.

Proceeds will mainly be used to invest in the company’s business and infrastructure expansion, in addition to investing in or acquiring complementary businesses.

AMTD International was spun out from AMTD earlier this year as the holding company for several of the parent’s subsidiaries, including AMTD Strategic Investment, AMTD Investment Solutions, AMTD Overseas, and AMTD Fintech Investment.

The division’s remit includes investment banking services such as equity and debt underwriting, advisory, and research, along with providing investment management services primarily for corporate and other institutional clients. Its investment platform has backed technology players such as Chinese peer-to-peer lending business Dianrong and Taiwanese artificial intelligence company Appier.

For the year ended December 2018, the divisions now comprising AMTD International reported total revenue of HK$723 million ($92 million), down from HK$1 billion the year before. Over the same period, net profit declined from HK$673 million to HK$525 million.

MSPEA invested in AMTD International last month, committing $8.3 million as part of a $53.5 million funding round in which Chinese mobile device maker Xiaomi, Hong Kong-listed internet platform Maoyan Entertainment, and online travel agency Tongcheng-Elong Holdings also participated. The firm has been a shareholder in the parent company since 2014, when it acquired a majority stake for an undisclosed amount.

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• Topics
• Greater China
• Financials
• IPO
• Hong Kong (China)
• Exit
• Morgan Stanley Private Equity Asia
• Financial Services