Peking University-backed software developer Beida Jade Bird is planning to raise between HK$200 million and HK$500 million on the Growth Enterprise Market (GEM) next month, according to sources. Jade Bird would become the first H-share company to list on the GEM board once the go-ahead is given by the listing committee, which meets tomorrow. The academic institution wants to bring its research efforts into the commercial field. Unlike main-board H shares, which are majority controlled by state-owned enterprises, Jade Bird is only 35 per cent owned by Peking University. However, the company must list on the GEM board as an H share due to regulatory restrictions. 'A certain amount of the company's assets are state-owned assets which belong to Peking University, therefore, we have to be listed as a state-owned company,' a source said. An H-share company is a mainland-registered company owned by a state enterprise. Besides being bound by GEM listing rules, H-share companies would also be subject to supervision by the China Securities Regulatory Commission. Peking University's stake in Jade Bird was diluted to about 35 per cent after it sold part of its holding to company management and New World Cyberbase, each with more than 10 per cent stake. Private investors from the mainland and Singapore hold the remaining shares. Jade Bird plans to become involved in five key university-developed products, including a wireless fire alarm system, satellite-based global positioning system, a network securities system, Internet encryption system and a smart card. The company plans to float between 20 per cent and 25 per cent of its shares to the public. The flotation would see the campany valued at HK$1 billion to HK$2 billion. Proceeds would be used for research and development.
