Hony, Orix-backed theme park operator targets $345m HK IPO

According to a regulatory filing, the company will sell one billion shares, not including the over-allotment option, for HK$2.18-2.68 apiece. It is unclear what kind of lock-up requirements the two private equity investors are subject to, but neither appears to be selling shares in the offering.

Haichang operates six marine parks located in Dalian, Qingdao, Tianjin, Yantai, Wuhan and Chengdu, and will complete the acquisition of two more theme parks - in Dalian and Chongqing - by the end of this year. The six marine parks received 7.2 million visitors in 2012, more than twice the number of Haichang's closest competitor.

Taking the existing and additional properties together, Euromonitor ranks the company as the second-largest theme park operator in China and one of the top 10 worldwide based on admission numbers.

Orix invested in Haichang in December 2009, paying $87.9 million for a 15% stake. This was diluted to 13.11% in May 2012 when a vehicle controlled by Hony Capital Fund V took a 12.58% interest for $80.5 million. They will be diluted to 9.83% and 9.44%, respectively, upon listing. Naijie Qu, the company's founder and chairman, will remain the majority shareholder once Haichang goes public.

Most of the proceeds from the offering will be used to develop theme parks in Shanghai and Hainan resort Sanya.

Haichang reported a net profit of RMB78.9 million ($12.8 million) in 2012, up 73% year-on-year, while revenue rose by 30% to RMB889 million over the same period.

BNP Paribas and Bank of America Merrill Lynch are serving as joint global coordinators, sponsors, bookrunners and lead managers for the offering.

 

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• Topics
• Exits
• Greater China
• Real estate
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• China
• Real estate
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• IPO
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• Hony Capital
• ORIX Capital