PE Weekly | News and Events in Chinese PE Market (2020.12.14–2020.12.20)
By: Fof Weekly
Tags: Private Equity, VC, China, Fundraising

This week (2020.12.14–2020.12.20), PE Weekly covers Fundraising and IPO news on PE market.

Fundraising

Shanghai Sci-Tech Innovation Center Fund II Looks to Raise $1.2B

18 December 2020 — — Shanghai Sci-tech Innovation Center Fund II, co-launched by Shanghai International Port Group (SIPG), has witnessed the signing of letter of intent. SIPG will contribute CNY 460 million ($70.3 million) to the total commitment of CNY 8 billion ($1.2 billion). The new fund will focus on investments in fields such as AI, biomedicine, integrated circuit, industry internet, 5G technology, and fintech. Read more…

Shanghai Launches $1.5B Aviation Industry Fund

18 December 2020 — — Shanghai Aviation Industry Fund, initiated by Shanghai Municipal Commission of Economy and Information, Shanghai Municipal Development & Reform Commission, and Science and Technology Commission of Shanghai Municipality, has officially been launched, targeting at China’s large aircraft manufacturing and aviation supporting industries. The fund aims to raise CNY 10 billion ($1.5 billion) in total with the first phase of CNY 1.5 billion ($229.5 million). The commitment comes from main investors including Shanghai Industrial Transformation and Upgrading Specialized Fund, Shanghai Pudong Sci&Tech Fund of Funds, Shanghai Electric Group Co., Ltd, and China (Shanghai) Pilot Free Trade Zone Lin-gang Special Area Administration. Read more…

Shanghai Launches $7.6B Biomedical Investment Fund

18 December 2020 — — Shanghai’s municipal government launched an investment fund dubbed “Shanghai Biomedical Industrial Equity Investment Fund”, which is initiated by and under the helm of Shanghai Industrial Investment (Holdings) Co., Ltd. The biomedicine fund aims to accrue CNY 50 billion ($7.6 billion) in total, with a first phase of CNY 10 billion ($1.5 billion) already closed. The municipal industrial fund will aim to empower local industry and drive the development of more high-end, intelligent, and international businesses. The main investors of the new vehicle include Shanghai Industrial Investment (Holdings) Co., Ltd, Shanghai Pharmaceuticals Holding Co., Ltd, GTJA Securities, and Shanghai International Group. Read more…

Shanghai Sets up $1.5B Fund for Smart Manufacturing

17 December 2020 — — The financial hub of Shanghai has set up an industry investment fund to raise an aggregate CNY 10 billion ($1.5 billion) for investments in smart manufacturing. The vehicle, whose first phase has hit CNY 3 billion ($458.9 million), will mainly invest in the smart manufacturing industry in the Yangtze River Delta, covering provinces like Jiangsu, Zhejiang, and Anhui. The creation of the billion-dollar vehicle also underscores the local government’s efforts to promote tech development in the city. Read more…

China’s Decheng Capital Looks to Raise $650M for Global Life Sciences Fund IV

17 December 2020 — — Decheng Capital, an investment firm that focuses on the life sciences and healthcare sectors, is raising $650 million for a new fund, Decheng Capital Global Life Sciences Fund IV. The Fund IV, if successfully closed, will be significantly larger than its predecessor fund Decheng Capital China Life Sciences USD Fund III, which targeted to raise up to $450 million. Read more…

Shanghai Sets up $1.8B Fund for Culture Industry

17 December 2020 — — Shanghai Industrial Investment (Holdings) Co., Ltd, joined hands with Shanghai Municipal People’s Government, Pudong New Area Government to initiate and co-launches an investment fund for culture industry with Shanghai Guosheng Group Co., Ltd and Shanghai Pudong Kechuang Group Co., Ltd. The fund targets CNY 12 billion ($1.8 billion) in total and CNY 5.55 billion ($849 million) at the first phase. It will mainly focus on investments in fields such as film and television, internet culture, creative design, art product trading, animation and games, as well as tourism and sports industry. Read more…

China’s Befor Capital Raises $107M Via First Closings of Fund III and Fund IV

15 December 2020 — — Chinese venture capital firm Befor Capital has raised a combined CNY 700 million ($106.8 million) in capital commitments across two funds to continue its investments in the consumption upgrade, advanced technology, and modern services fields. The capital commitments include a corpus of CNY 500 million ($76.3 million) raised in the first closing of the firm’s Fund III, and its Fund IV’s first closing at CNY 200 million ($30.5 million). Existing LPs of Befor Capital’s Fund I and Fund II collectively invested over CNY 100 million ($15.3 million) in the two new vehicles. Nasdaq-listed solar cell maker Canadian Solar Inc is the major limited partner (LP) in Fund III, along with other investors including government-guided funds backed by the local governments in northern China’s Inner Mongolia and Hohhot. LPs of Fund IV include investment platforms backed by the government of eastern China’s Jingkai District, Wuxi City, and Chinese state-owned investment firm Wuxi Capital, among others. Read more…

IPO

China’s P&G’ Blue Moon Cleans up in $1.2B Hong Kong IPO

17 December 2020 — — China’s biggest detergent maker, Blue Moon Group Holdings, cleaned up in its debut on the Hong Kong Stock Exchange with its shares closing 13% higher, spurred by significantly increased profits from Covid-19 demand for disinfectants.

Backed by private equity firm Hillhouse Capital Group, Blue Moon raised HK$9.58 billion ($1.24 billion) in the IPO, selling 747million shares at HK$13.16 apiece. That gives it a valuation of HK$85.5 billion ($11 billion).

The funds raised could increase to HK$11 billion if international underwriters, including BNP Paribas and Citigroup, exercise over-allocation options to issue up to 15% more of the total shares. Read more…

Chinese Chip Designer Bestechnic’s IPO Debut on SSE STAR Market

16 December 2020 — — Bestechnic (Shanghai) Co., Ltd, a fabless IC company with a focus on smart audio system-on-a-chip (SoC), started trading on the Shanghai STAR Market at a public offering price of CNY 163.07 per share, raising CNY 4.86 billion ($743.5 million). Its initial listing shares account for 25% of total outstanding shares. IDG Capital, Xiaomi, Alibaba, Oriza Hua, Shenzhen Capital along with other investors had made an undivulged investment in Bestechnic in 2019. Bestechnic’s portfolio backers also included PE firm Jundu Investment, AIoT Innovation platform Arm Accelerator, and Tsinghua Holdings’ THG Ventures. Read more…