You are here
Home > Region > China > Global ECM Weekly Monitor Nov 3, 2017 – Yixin Group, Razer Inc

Global ECM Weekly Monitor Nov 3, 2017 – Yixin Group, Razer Inc

Yixin Group Limited

  • Announcement Date: November 2, 2017
  • Expected Offer Date: November 16, 2017
  • Gross Offering Amount: 878,680,000 shares valued at HKD 6.8 billion
  • Price per share: HKD 6.60-7.70
  • Lead Banks: China Merchants Securities, Citi, CLSA, Credit Suisse, Futu5.com, Sun Securities, The Hongkong and Shanghai Banking Corporation, UBS, Zhongtai International Securities
  • Nature Of The Issue: Corporate Purposes (Working Capital, R&D, M&A, Investments)
  • Security Issued: Ordinary Shares
  • Overallotment: 131,802,000 shares valued at HKD 1 billion

Yixin Group, the largest online automobile retail transaction platform in China, announced a global offering of 878,680,000 shares. The IPO includes 87,868,000 of Hong Kong Offer Shares and 790,812,000 shares pursuant to an International offering.

Yixin Group operates two segments: 1) a transaction platform to facilitate automobile purchases, auto loans, services to dealers, and advertising and subscription services, and 2) a self-operated financing business to provide consumers with auto finance solutions. The company generated RMB 1.5 million of revenue in 2016.

The company intends to use the proceeds as follows:

  • HKD 1.8 billion towards sales and marketing initiatives to support geographical expansion of auto dealer cooperative network;
  • HKD 1.2 billion to enhance research and technology capabilities, and investment in IT systems and data analytics;
  • HKD 1.2 billion to strengthen capital resources to support ongoing growth of self-operated financing business;
  • HKD 1.2 billion to M&A opportunities or investments in complimentary assets and businesses;
  • and, HKD 602 million for working capital and other general corporate purposes.

Razer Inc. (SEHK:1337)

  • Announcement Date: October 30, 2017
  • Expected Offer Date: November 13, 2017
  • Gross Offering Amount: 1,063,600,000 shares valued at HKD 4.3 billion
  • Price per share: HKD 4
  • Lead Banks: China International Capital Corporation, CMB International Capital, Credit Suisse, ICBC, UBS, UOB Kay Hian
  • Nature Of The Issue: Corporate Purposes (Working Capital, R&D, M&A, Investments)
  • Security Issued: Ordinary Shares
  • Overallotment: 159,540,000 shares valued at HKD 638 million

Razer Inc, a global gaming lifestyle brand, announced a global public offering of 1,063,600,000 shares, valuing the company at least HKD 25.9 billion.

Razer provides an integrated portfolio of premium gaming hardware, software and services. The company sells directly to consumers through RazerStores and online, and indirectly through their global distribution network. The company generated US$392.1 million of revenue in 2016.

Razer intends to use the proceeds as follows:

  • HKD 876 million to develop new verticals in the gaming and digital entertainment industry;
  • HKD 876 million to finance other acquisitions;
  • HKD 701 million to expand R&D capabilities;
  • HKD 701 million towards sales and marketing initiatives to expand the brand and increase user awareness;
  • and, HKD 350 million for general working capital purposes.

Related Readings

Investment Banking
Equity Capital Markets
Debt Fuelled Share Repurchases
Dividend Policy

Sara
Sara
Sara Troka is a first year HBA student at Ivey Business School. Sara will be joining a bank in NYC next summer. She was involved in the York Finance Club as VP Marketing and the York University Student Investment Fund as a Junior Analyst. Outside of finance, Sara enjoys photography and fashion. She is an avid traveler who enjoys exploring historic cities and beaches across Europe.
https://www.linkedin.com/in/saratroka/

Leave a Reply

Top