https://image.cnbcfm.com/api/v1/image/106700760 — Pedestrians wearing protective masks walk past an electronic ticker displaying the share price of Hong Kong Exchanges & Clearing Ltd. at the Exchange Square complex in Hong Kong, China, on Wednesday, Aug. 19, 2020.Roy Liu | Bloomberg | Getty Images

China software firm Ming Yuan launches up to $800 million in Hong Kong IPO

14 Sep 2020, 05:46

Key Points

Chinese property software company Ming Yuan Cloud on Monday launched an IPO in Hong Kong to raise as much as HK$6.17 billion ($798 million), a deal term sheet showed, as the city gears up for its second busiest week for equity offerings this year.
The company will sell 374 million shares at a range of HK$15 to HK$16.50 each, which will value it between $3.62 billion and $3.98 billion.
A virtual management roadshow will begin Monday, according to the term sheet, and the deal is set to price on Friday.

Chinese property software company Ming Yuan Cloud on Monday launched an IPO in Hong Kong to raise as much as 6.17 billion Hong Kong dollars ($798 million), a deal term sheet showed, as the city gears up for its second busiest week for equity offerings this year.

The company will sell 374 million shares at a range of HK$15 to HK$16.50 each, which will value it between $3.62 billion and $3.98 billion.

A virtual management roadshow will begin Monday, according to the term sheet, and the deal is set to price on Friday.

Ming Yuan's deal is part of a slew of IPOs and secondary listings worth at least $4.5 billion due to launch in Hong Kong this week, which is on track to be the second busiest for equity capital markets in the city in 2020, according to Refinitiv data.

The busiest week of the year was in June when JD.com and Netease raised $7.5 billion combined. Ming Yuan shares will start trading on the Hong Kong Stock Exchange on Sept. 25.

The deal has attracted six high profile cornerstone investors which will take $276 million worth of stock, equating to 35% of the shares at the top end of the offer, the term sheet shows.

Hillhouse has subscribed for $86 million worth of stock, Singapore's GIC and China Structural Reform Fund will take $50 million each, according to the term sheet.

Private equity fund Sequoia, BlackRock and Fidelity International will each take $30 million.

Among other planned listings, ZTO Express passed its Hong Kong listing committee hearing last week, according to documents lodged with the exchange, and could raise up to $2 billion as it presses on with a secondary listing.

Chinese hotel chain Huazhu is currently raising nearly $900 million in its secondary listing and will price its shares on Wednesday, according to its prospectus.