China’s Ming Yuan Cloud joins a flurry of companies seeking to raise funds in Hong Kong this month

Name: HKEX chief executive Charles Li Xiaojia unveils three-year plan
Uploaded: 2020-09-14T09:01:00.000Z
Duration: 2 min 17 s
Description: HKEX chief executive Charles Li Xiaojia unveils three-year plan

The provider of cloud-based software services to Chinese property developers has secured funding from six cornerstone investors including GIC and Sequoia

Shenzhen-based Ming Yuan Cloud is seeking to raise up to US$797 million, while several other IPOs and secondary listings are poised to launch this month

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Hong Kong stock exchange is a popular fundraising destination, with 90 companies having raised US$22.61 billion so far this year, more than double the US$10.84 billion raised from 89 deals a year ago. Photo: EPA-EFE

Georgina Lee

Published: 5:01pm, 14 Sep 2020Updated: 10:39pm, 14 Sep 2020

Ming Yuan Cloud Group, a software solutions provider for property developers, plans to raise as much as US$797 million from an IPO in Hong Kong, becoming the first software-focused Chinese proptech firm to debut on the city’s exchange this year.

The Shenzhen-headquartered company’s initial public offering is among a spate of applications that have been passed by the Hong Kong stock exchange’s listing committee last week, which could make September one of the busiest months for IPOs this year.

Some of the other offerings in the works include the secondary listing of logistics firm ZTO Express, which is reportedly raising as much as US$2 billion, and the IPO of Hillhouse Capital-backed JHBP Holdings, also known as Genor Biopharma. So far this year, 90 companies have raised US$22.61 billion, more than double the US$10.84 billion from 89 deals a year ago, data from Refinitiv shows.

Ming Yuan Cloud is selling 374.2 million shares, or 20 per cent of its share capital, at an indicative range of HK$15 to HK$16.5 per share, according to a term sheet seen by the Post. This could see the company raise between US$724 million and US$797 million.

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HKEX chief executive Charles Li Xiaojia unveils three-year plan

There is an overallotment option to sell an additional 56.13 million shares to meet strong investor demand. The deal’s joint sponsors and global coordinators are CICC and Citi, while the joint bookrunners include CMS, Futu, GF Securities, and Haitong International.

For the IPO, the company has already secured US$276 million from six cornerstone investors, including Singapore sovereign wealth fund GIC, Sequoia, China Structural Reform Fund, BlackRock and Fidelity International.