JD Capital plans reverse merger with Shanghai-listed firm

According to a filing, the parent company - Beijing Tongchuang Jiuding Investment Management - plans to sell and inject its PE business into Jiangxi Zhong Jiang. Meanwhile, it will subscribe shares issued by Zhong Jiang via a private placement.

The selling price and details of shares issuance were not disclosed. Once the transaction is completed, JD will be listed on the Shanghai Stock Exchange.

Last year, JD became the first Chinese PE firm to list on the country's emerging over-the-counter (OTC) platform - National Equities Exchange and Quotation (NEEQ). In May, JD spent RMB4.1 billion ($640 million) to acquire Jiangxi Zhong Jiang Holding Company, which holds a 72.37% stake in the listed property unit.

JD wants to establish a "mega asset management" framework, encompassing private equity, hedge funds and mutual funds. Having launched its own brokerage firm and mutual fund arm last year, the firm now plans to set up a private commercial bank. It has also created a fund to provide individual loans for Chinese university students and invested $322 million to set up an online peer-to-peer (P2P) lending platform.

The GP had RMB31 billion in private equity funds under management at the end of last year, and has secured a more than 30% in IRR on its investments. It closed its second US dollar fund at $200 million last September.

Zhong Jiang Real Estate generated RMB803 million in revenue last year, up from RMB605 million in 2013. Its net profit jumped over 190% year-on-year to reach RMB75 million in 2014.

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• Topics
• Greater China
• GPs
• Jiuding Capital
• China
• GPs