Tiantu Capital, a Chinese consumer-focused venture capital firm, is set to launch an initial public offering (IPO) in Hong Kong.
The company is aiming to raise up to HKD 1.9bn (USD 253m) by offering approximately 173 million shares at a price range of HKD 5.80 to HKD 11.40 apiece. The IPO is set to take place on October 6, 2023.
Tiantu Capital was founded in 2014 and has since invested in over 100 companies, with a focus on Chinese consumer firms.
The company is led by Chairman Yonghua Wang, who holds approximately 227 million shares directly and indirectly. Tiantu Capital’s decision to go public in Hong Kong is in line with the trend of Chinese companies seeking to raise capital in the city, which has become a popular destination for IPOs due to its proximity to mainland China and its status as a global financial hub.
Photo by Ruslan Bardash
The move to go public in Hong Kong comes after Tiantu Capital received approval from the China Securities Regulatory Commission to conduct an overseas IPO.
The company is expected to use the funds raised from the IPO to expand its investment portfolio and strengthen its position in the Chinese venture capital market. The success of Tiantu Capital’s IPO could have wider implications for the Chinese venture capital industry, which has seen a surge in interest from both domestic and foreign investors in recent years.
Background of Tiantu Capital
Tiantu Capital is a Chinese venture capital firm that focuses on investing in consumer-oriented companies. The company was founded in 2002 by Wang Yonghua and Feng Weidong, and it is headquartered in Shenzhen, China. Tiantu Capital has a strong track record of investing in successful companies, and it has become one of the most well-respected venture capital firms in China.
Tiantu Capital has a team of experienced professionals who have a deep understanding of the Chinese consumer market. The company’s investment strategy is focused on identifying companies that have the potential for long-term growth and profitability. Tiantu Capital’s portfolio includes companies in a variety of industries, including e-commerce, retail, healthcare, and technology.
Wang Yonghua, the chairman of Tiantu Capital, is a highly respected figure in the Chinese venture capital industry. He has over 20 years of experience in the industry, and he has been instrumental in the success of Tiantu Capital. Feng Weidong, the co-founder of Tiantu Capital, is also a highly respected figure in the industry. He has over 15 years of experience in the venture capital industry, and he has played a key role in the company’s investment strategy.
Tiantu Capital has a strong reputation for providing value to its portfolio companies. The company has a team of professionals who work closely with portfolio companies to help them achieve their growth objectives. Tiantu Capital’s investment approach is focused on building long-term relationships with its portfolio companies, and the company has a proven track record of helping companies achieve success.
Overall, Tiantu Capital is a highly respected venture capital firm in China, and it has a strong track record of investing in successful companies. The company’s experienced team, led by Wang Yonghua and Feng Weidong, has a deep understanding of the Chinese consumer market, and it has a proven track record of providing value to its portfolio companies.
Details of the Hong Kong IPO
Tiantu Capital, a Chinese consumer-focused venture capital firm, has applied for a Hong Kong IPO with the aim of raising up to HKD 1.9 billion (USD 253 million) AVCJ. The Shenzhen-based GP is offering about 173 million shares at HKD 5.80 to HKD 11.40 apiece. The listing date has been set for October 6.
According to the firm’s prospectus, Tiantu Capital garnered a revenue of 2.026 billion yuan ($302 million) in 2021, a year-on-year decrease of 18.63%, while the net profit was 735 million yuan, a slight increase compared with 706 million yuan in 2020 Pandaily.
Tiantu Capital is expected to become the first local VC listed on the National Equities Exchange and Quotation (NEEQ) and Hong Kong Stocks Exchange in China Pandaily. The company has not provided details of the IPO plans yet, though market sources estimate the company’s fund-raising target to be around $500 million The Bamboo Works.
Huatai International is the sole sponsor of the Hong Kong IPO, while Huatai Financial Holdings (Hong Kong) and CEB International Capital Corporation are the joint global coordinators AVCJ. Tiantu Capital has also appointed other joint bookrunners and joint lead managers for the IPO.
Tiantu Capital’s Hong Kong IPO will be listed on the Main Board of the Hong Kong Stock Exchange (HKEX) AVCJ. The company plans to use the proceeds from the IPO to invest in more consumer-focused companies in China and broaden its investment portfolio Pandaily.
