China Renaissance has attracted Ant Financial, a financial technology affiliate of Alibaba Group Holding, as well as LGT Group Foundation and Snow Lake Capital as cornerstone investors for its upcoming initial public offering in Hong Kong, according to sources.
The Beijing-based investment bank is looking to raise as much as US$400 million and will launch its IPO on Thursday, seeking a valuation of between US$3 billion and US$4 billion, the sources said.
Ant Financial, which is controlled by Jack Ma, operates the world’s largest mobile payment platform, Alipay, and money market fund Yu’e Bao.
LGT Group Foundation is a European private wealth and asset management firm wholly owned by the Liechtenstein Foundation.
Snow Lake Capital, an Asian alternative investment manager with offices in Hong Kong, Beijing and Tianjin, has previously invested in Haidilao’s IPO as a cornerstone investor, according to Haidilao’s prospectus.
Founded in 2004 by Bao Fan, a former Morgan Stanley and Credit Suisse banker, China Renaissance has advised on and invested in a number of high-profile mergers and acquisitions by Chinese technology start-ups, including those between Meituan and Dazhong Dianping and between Didi and Kuaidi, as well as the acquisition of Mobike by Meituan.
The company has also served as financial adviser on the IPO of Meituan Dianping, which is looking to raise up to US$4.4 billion on the Hong Kong market.
China Renaissance’s prospectus shows the company’s adjusted revenue increased by 48 per cent in 2017 to US$212 million. In the first quarter of 2018, its adjusted net profit reached US$35.67 million, a fivefold increase from the same period last year, thanks to growth in its investment banking and investment management businesses.
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