Alipay writes US$50 million cheque as China Renaissance prepares to raise up to US$377 million in Hong Kong IPO
Chinese investment bank plans to issue 85 million shares at between HK$31.8 and HK$34.8 per share
Investment bank China Renaissance, which has advised on a number of high-profile technology mergers and acquisitions, has set the pricing range for its Hong Kong initial public offering with the aim of raising as much as HK$2.96 billion (US$377 million).
The company plans to issue 85 million shares between HK$31.8 and HK$34.8 per share, before the exercise of a “greenshoe” or over-allotment option, according to information about the initial public offering’s terms obtained by the South China Morning Post. If it exercises the option, the fundraising value could rise by up to 15 per cent to HK$3.4 billion.
China Renaissance has secured US$125 million from three cornerstone investors. Online payments company Ant Financial Services, which operates the Alipay cashless payments business, has agreed to invest US$50 million. Ant Financial is an affiliate of Alibaba, which owns the Post.
Snow Lake Funds, an Asian alternative investment manager, will put in US$50 million. LGT Group Foundation, a European private wealth and asset management firm, will invest US$25 million.
China Renaissance attracts Jack Ma’s Ant Financial as cornerstone investor in Hong Kong IPO
The investment by Ant Financial comes with “no strings attached", said China Renaissance managing director Xiang Wei.