SCPE-backed Sunfonda Group launches Hong Kong public offering
Sunfonda Group Holdings, the second largest luxury auto dealer in China - and a Standard Chartered Private Equity (SCPE) portfolio company - plans to raise up to HK$683 million ($88 million) through a Hong Kong IPO.
The Xi'an-based car dealer plans to issue 150 million shares at HK$3.65-4.55 apiece, according to a prospectus. Chinese state-owned company Taiping Insurance will participate as a cornerstone investor, paying $10 million for a 3.5% stake in the firm.
Founded in 2000, Sunfonda started as the first Audi dealership in Shanxi province. It soon expanded its network, with seven outlets selling ultra-luxury auto brands such as Porsche and Ferrari/Maserati, as well as two outlets selling Bentley. There are also 13 outlets selling brands including Volkswagen, Hongqi and Mercedes-Benz.
In 2011, SCPE acquired a 20% stake in the company for $34.37 million. Upon completion of the IPO, its stake will be diluted to about 15%, based on the offering pricing at the top of the indicative range.
Most of the proceeds raised from the IPO will be used to open more outlets and improve Sunfonda's sales network.
J.P. Morgan is the sole global coordinator and sponsor of the listing, with Standard Chartered serving as the lead underwriter.
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