• Tue
  • Sep 30, 2014
  • Updated: 3:26pm
BusinessMoneyMarkets & Investing

Tianhe Chemical's Hong Kong IPO seeks to raise up to US$818m

Daughter of chairman Qi Wei works for UBS, one of four banks handling the listing

PUBLISHED : Wednesday, 04 June, 2014, 5:08am
UPDATED : Wednesday, 04 June, 2014, 5:08am

Tianhe Chemicals Group is seeking to raise between US$636 million and US$818 million in a Hong Kong initial public offering, according to a term sheet of the deal.

The listing drew attention in January this year when JP Morgan stepped aside from the deal, amid an investigation by US authorities into its hiring practices in China.

JP Morgan's exit was driven by concerns raised about the bank's employment of Joyce Wei, the daughter of Tianhe Chemicals chairman Qi Wei, International Financing Review (IFR) reported at the time, citing sources.

Hong Kong securities licence filings show that a Jiao Wei worked at JP Morgan from January 2012 to August 2013, and is now on the staff at UBS, joining the Swiss bank in October. Jiao is Joyce Wei's Chinese name, sources familiar with the matter previously said.

JP Morgan and UBS declined to comment on the reports at the time.

UBS is one of four joint global coordinators on the Tianhe Chemicals listing, the term sheet showed, along with Bank of America Merrill Lynch, Morgan Stanley, and Goldman Sachs.

Tianhe Chemicals is offering shares between HK$1.75 and HK$2.25 each, with 72.5 per cent of the offer consisting of new shares and the rest being sold by existing shareholders.

The company, which makes lubricating oil additives and special fluorides, had planned to list in London in 2011 but eventually decided that Hong Kong has a bigger pool of investors for Chinese companies, according to IFR, which is published by Thomson Reuters.

The deal size could increase up to US$940 million if the so-called greenshoe option is exercised to meet additional demand for the stock, the term sheet showed.

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