CITIC Capital to list on China’s New Third Board

CITIC Capital said in a filing that it will list through its wholly-owned subsidiary - CITIC Capital Equity Investment (Tianjin) Corporation. The listing body mainly focuses on private equity investments and management, which include CITIC Capital's newly-established renminbi fund-of-funds business, renminbi PE funds and its "one belt, one road" infrastructure fund.

Through its fund-of-funds platform, Chinese onshore investors are able to invest in offshore funds managed by CITIC Capital, early to growth stage third-party VC funds and overseas middle market-focused PE funds.

CITIC Capital previously set up a joint venture alongside CITIC Group and Kazyna Capital - a subsidiary of the sovereign wealth fund Samruk-Kazyna of the republic of KazaKhstan - to make direct investments in China. The CITIC Kazyna Investment Fund, which is raising $600 million for its second vehicle, will focus on infrastructure projects, transportation, logistics and new energy industries which are in line with Chinese government's "one belt, one road" initiative.

The listing entity comprises GP investments in Focus Media, SF Express, Harbin Pharmaceutical Group and Tongcheng Network Technology. It recorded revenue of RMB105 million ($16 million) last year, with net profit of RMB4.11 million. For the half of this year, revenue came to RMB31.8 million while net profit was about RMB776, 000.

The parent company said in the filing that it will inject some current outstanding overseas investments into the listing entity, allowing domestic investors to share return. Meanwhile, CITIC Capital will use proceeds generated from the secondary market to acquire offshore assets.

Founded in 2002, CITIC Capital manages $5 billion of capital from a diverse group of international and Chinese investors. Its core businesses include private equity, real estate, structured investment and finance, asset management and venture capital. Its PE arm - CITIC Capital Partners - manages $2.6 billion of committed capital in China, Japan and the US.

CITIC Capital's current major shareholders are state-owned enterprise CITIC Group, Tencent Holdings, Fubon Life Insurance, Qatar Holdings and CITIC Capital's management team.

Last year, JD became the first Chinese PE firm to list on the New Third Board. It now wants to list on Shanghai's main board through a reverse merger with publicly-traded property developer Jiangxi Zhong Jiang Real Estate. The other PE firms on the New Third Board are CSC Group, Shenzhen Cowin Capital and ChinaEquity Group.

Last week, Chinese early-stage VC firm Innovation Works announced it had applied to list on the board.

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• Topics
• Greater China
• Fundraising
• China
• Fundraising
• CITIC Capital
• Fund-of-funds
• Renminbi