PE-backed Ozner Water targets $158m Hong Kong IPO

The company is offering 422 million shares priced at HK$2.25-2.70 apiece, plus an over-allotment option of up to 15% of the shares available for sale, depending on investor demand.

None of the private equity investors will make a partial exit via the IPO. The proceeds will be used to boost manufacturing capacity, pay down debt and for working capital and sales and marketing expenses.

Och-Ziff Capital Management has agreed to serve as a cornerstone investor, subscribing to $40 million worth of shares at the offer price.

Ozner has received three rounds of equity financing. SAIF Partners put in $15.8 million in 2010 via its fourth fund and now owns 26.45% of the business, set to fall to 19.84% post-offering. Ares invested $36.2 million between 2011 and 2012 and will be diluted to 13.66%, from 18.48%.

Goldman joined the two existing investors in a Series C round worth $25 million in 2012. Its holding will fall to 8.24% from 10.98%.

The company claims to be the third-largest player in China's highly fragmented water purifier industry with a 1.1% market share in 2012. It has an annual production capacity of 170,000 water purifying machines, which are sold or leased to household and corporate customers through a third-party distribution network that covers 125 cities. Corporates account for 80% of customers.

Ozner also has a smaller air sanitization business that deals exclusively with corporate clients.

Ozner reported revenue of RMB402.3 million ($64.3 million) in 2013, up from RMB290.4 million the previous year. Net profit came to RMB152.9 million for 2013, compared to RMB101.7 million in 2012.

Goldman and Standard Chartered are running the IPO.

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• Topics
• Exits
• Consumer
• Greater China
• Exit
• IPO
• China
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• Goldman Sachs