CIFI Holdings, Tsui Wah launch Hong Kong IPOs

Tsui Wah restaurant
Tsui Wah restaurant

Shanghai property developer CIFI Holdings (Group) and Hong Kong restaurant chain operator Tsui Wah are launching their Hong Kong initial public offering (IPO) to raise HK$2.07 billion (US$267 million) and HK$762.4 million (US$98 million) respectively.

 

CIFI is offering 1.255 billion new shares or 21.75% of the company’s enlarged share capital at HK$1.33 to HK$1.65 per share, with a greenshoe option to issue an additional 15% of the IPO shares. About 90% is expected to make up the international offering and the rest is for the Hong Kong public offering, according to a term sheet.

 

The IPO was opened for bookbuilding to institutional investors from November 12 and for Hong Kong public offering from November 13. Bank of Communications (BOCOM), Citi, Morgan Stanley, Standard Chartered and First Shanghai are the joint bookrunners and joint lead managers. Citi, Morgan Stanley and Standard Chartered are the joint sponsors.

 

About 80% of the proceeds will be used for the acquisition of new products and for land development in China, 10% will be for repayment of bank loans including a facility agreement with Standard Chartered Bank and 10% will be for working capital purposes.

 

Tsui Wah has also kicked off its investor roadshow. The cha chaan ting (Hong Kong-style restaurant) operator is offering about 330 million  shares or 25% of its enlarged share capital at a range between HK$1.89 and HK$2.27 per share base offering, with an over-allotment to issue an additional 15% of the IPO shares. Some 90% is for the international offering and the rest is allocated for the Hong Kong public offering, according to a term sheet.

 

China-based private equity fund Capital Today and Prax Capital will each subscribe to US$10 million worth of shares as cornerstone investors. There is a 12-month lock-up for Tsui Wah’s controlling and founding shareholders and CEO Anthony Lock Kwok-on, and the cornerstone investors.

 

Majority of the proceeds will be used for new restaurants’ opening in China and Hong Kong as well as a delivery centre and catering service in the territory, new central kitchens in Shanghai and Southern China including Hong Kong. Other uses include the upgrade of its IT system and working capital purposes.

 

Deutsche Bank is the sole global coordinator and sole bookrunner for the IPO.

 

 

  

Date

12 Nov 2012

Channel

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