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Chinalin Securities stock goes up 44% on Shenzhen Trade debut: Startup Funding Roundup – China (Jan 14 - 20)

‘Startup Funding Roundup’, the weekly report prepared by The Passage team, provides detailed information about venture capital financing, fundraising, investments and acquisitions in China.

Jan 23, 2019 by Yun Nie
Chinalin Securities stock goes up 44% on Shenzhen Trade debut: Startup Funding Roundup – China (Jan 14 - 20)

Despite an unexpected slowdown in China's economic growth, a total of 77 investments and acquisitions occurred last week (from January 14 to 20).

Healthcare sector topped with 14 investments, accounting for 18% of the entire funds raised during the time (see details in the Chart below).

https://cdn.thepassage.cc/filters:quality(70)/public/image/2019/01/23/chart-1.jpg

Series A round came first (26), followed by acquisitions (18) and strategic investments (12) in stage-wise break-up.

https://cdn.thepassage.cc/filters:quality(70)/public/image/2019/01/23/chart-2.jpg

Tencent’s (腾讯) SaaS (Software as a service) partner Weimob (微盟) was listed on Hong Kong Stock Exchange on January 15. Biotechnology firm Qingdao Vland Biotech Group (蔚蓝生物), fiber specialist Suzhou Longjie Special Fiber (苏州龙杰) and financial startup Chinalin Securities (华林证券) also filed for IPO last week. Let’s take a look at some of the interesting transactions.

IPO rush

On January 15, Tencent-backed Weimob, the largest WeChat third party solution provider, raised up to HKD 1.06 billion (USD 135 million) from its Hong Kong IPO after pricing 302 million shares at HKD 2.8 to 3.5 apiece (USD 0.36 to 0.45), reported Chinese tech news aggregator itjuzi.com (IT桔子). Shares of the firm climbed to HKD 2.93 (USD 0.37) on the first day of trading, a 4.6% uptick compared to the lower end of indicated range. The company said 25% of the proceeds will be earmarked to seek strategic cooperation and for investments and acquisitions.

On January 16, China-based biotechnology firm Qingdao Vland Biotech Group offered 3,866,7000 shares priced at CNY 10.19 (USD 1.50) per share, securing CNY 394 million (USD 57.9 million) from the Shanghai IPO, reported Sina, a leading news platform in China.

On January 17, Suzhou Longjie Special Fiber, a textile material manufacturer and distributor in China, officially listed on the Shanghai Stock Exchange under sticker symbol of 603332. According to itjuzi.com, the company offered 29,735,000 shares at CNY 19.44 (USD 2.86) apiece.

On the same day, Chinese financial investment startup Chinalin Securities sold 270 million shares at CNY 3.62 (USD 0.53) per share, securing a total of CNY 977.4 million (USD 143.6 million) during its IPO at the Shenzhen Stock Exchange. The financial firm closed the first day of trading at a price of CNY 5.21 (USD 0.77) per share, a 44% improvement from the IPO price. According to media behemoth Forbes, Chinese billionaire Lin Li will own 64% of the Chinalin Securities after the IPO.

Significant investments

On January 14, Chinese logistics management systems developer Yimidida (壹米滴答) secured CNY 1.8 billion (USD 264.4 million) in a Series D round of financing led by Boyu Capital (博裕资本). HOPU Investment Management Company (厚朴投资) and Source Code Capital (源码资本) participated. Huaxing Capital (华兴资本) came in on the deal as a financial advisor.

The fresh capital injection will be used to improve on logistics.

On January 18, Chinese microblogging platform Weibo (微博) invested CNY 350 million (USD 51.4 million) in selfie app WutaCam (无他相机). WutaCam’s operator Tian Ge Interactive (天鸽互动) and Weibo have 51.2% and 34.8% stakes respectively.

Check out details in the following chart.

https://cdn.thepassage.cc/filters:quality(70)/public/image/2019/01/23/chart-3.jpg

Yun Nie

Yun Nie is a New York-based tech reporter. She focuses on India-China financial market, global IT giants and technology-centric market trends. She can be reached at Yunnie@thepassage.cc.

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