CIC, China Life, Franklin Templeton invest in Prince Frog via IPO
Sovereign wealth fund China Investment Corp, together with China Life Insurance (Group) Co. and Franklin Templeton Investment Corp., invested a combined USD28 million in Prince Frog International Holdings Ltd.’s USD100 million initial public offering, a person familiar with the deal said July 7.
Amy Lam
8 Jul 2011
Sovereign wealth fund China Investment Corp, together with China Life Insurance (Group) Co. and Franklin Templeton Investment Corp., invested a combined USD28 million in Prince Frog International Holdings Ltd.’s USD100 million initial public offering.
Prince Frog, which sells childcare products under the Frog Prince brand, sold a total of 300 million shares at HKD2.60 each, which is closer to the bottom-end of the indicative price range of HKD2.51 to HKD3.76.
The price, close to the indicative range of HKD2.51 to HKD3.76, represents about 10 times pre-shoe price-earnings multiples based on 2011 estimated earnings. After a clawback for Hong Kong public offering was triggered, a total of 210 million shares or 70% of the total offering shares were allocated to institutional investors.
The final institutional books were covered multiple times with high quality global funds across Asia. Over 70% of the final book went to the top 10 allocations with over 60 institutions participated in the offering.
Prince Frog shares will begin trading on the Hong Kong stock exchange July 15.
The company will use majority of the IPO proceeds to promote its brand and products as well as expand its production capacity, the term sheet said.
CCB International (Holdings) Ltd. is the deal’s sole bookrunner.
