PE-backed CICC files for $811m Hong Kong IPO
China International Capital Corp. (CICC) has announced the pricing for its upcoming Hong Kong IPO, which will see the company raise up to HK$6.3 billion ($811 million).
CICC filed its prospectus in July, at which time it was reported to be looking to raise about $1 billion. A new filing sets the price at HK$10.28 per share for 611 million shares. The offering comprises 556 million newly issued shares and 55 million shares from current shareholders, including the largest investor, China Investment Corporation (CIC).
Currently CIC holds a 43.17% stake in the company. Other investors include KKR, GIC, TPG and Great Eastern Life; the firms joined together in 2010 to buy the 34.3% stake held by CICC co-founder Morgan Stanley.
Morgan Stanley formed CICC as a joint venture investment bank with China Construction Bank in 1995. Plans for an IPO were put on hold in 2013 after the departure of CEO Levin Zhu. Zhu was succeeded this year by Mingjian Bi, a partner at Hopu Investments and former investment banking head at CICC.
CICC is China's first domestic investment bank, and covers several sectors. In addition to underwriting share and bond offerings for state-owned and private Chinese companies, it also has brokerage, wealth management and private equity businesses. The company's revenues for 2014 were RMB6.15 billion ($990 million), up from RMB4.06 billion in 2013, and profit in the same period rose from RMB370.1 million to RMB1.12 billion.
The IPO is being sponsored by CICC and ABC International.
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