China sees first PE-backed IPOs in four months

Wuxi Xuelang Environmental Technology, a waste incineration firm backed by Boxin Capital and Jangsu Jolmo Venture Capital Management, raised RMB294.6 million ($47.4 million) after selling 20 million shares at RMB14.73 apiece.

According to AVCJ Research, the two VC firms acquired a 13.24% stake in Wuxi Xuelang for RMB65.1 million in 2010. Boxin held 5.49% pre-listing, while Jolmo owned 8.6%.

Meanwhile, Feitian Technologies, an information security products maker backed by JD Capital, raised RMB787 million from the sale of 23.76 million shares at RMB33.13 apiece. JD Capital acquired a 6% stake in the firm for about RMB42 million in 2010, AVCJ Research's records show.

The two companies were suspended from trading for half an hour on ChiNext - a Shenzhen board for small and medium-sized enterprises - after their shares soared 32% on opening, exceeding the 20% limit. Gains acclerated to 44% on resumption of trading.

Another non-private equity invested company - Shandong Longda Meat Foodstuff - also started trading on ChiNext today, marking the first batch of new listings on the Shenzhen and Shanghai bourses since February 19.

The China Securities Regulatory Commission (CSRC) officially ended the 14-month embargo on new share offerings earlier this year, introducing reforms intended to curb speculation and improve the quality of listing applicants.

Forty-three companies went public in January and five in February. There have been none since then, which means more than 600 companies remain on the waiting list. Last month, the regulator said it plans to approve about 100 IPOs between June and the end of this year.

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• Topics
• Greater China
• Exits
• Renminbi fund
• Technology
• Exit
• IPO
• China
• Renminbi
• Cleantech
• Technology
• JD Capital