Hong Kong listing will be the first from mainland firm acquired by foreign fund
Goodbaby Group, the mainland's largest producer of baby carriages as well as other products for young children, plans to raise up to US$200 million from an initial public offering in Hong Kong later this year, sources said.
The sale marks the first IPO from a mainland company acquired through a leveraged buyout involving a foreign fund.
Private equity firm Pacific Alliance paid US$122.5 million for a 67 per cent stake in Goodbaby in January last year, arranging US$55 million in bank financing to execute the deal.
The company planned to sell about US$100 million in new shares and up to US$100 million old shares, a source said. The sale could cut by about 50 per cent Pacific Alliance's stake in the company.
Goodbaby would sell shares as a red chip, or a mainland-based company incorporated offshore, after scrapping a plan to sell shares in the mainland, where it had expected to command a 20 per cent premium to what it might earn in Hong Kong, a source said.