Transaction Overview
● Shenwan Hongyuan is a leading investment banking focused on securities businesses in China. The Company is committed to providing diverse financial products and services to its clients, including enterprise finance, personal finance, institutional services and trading, as well as investment management.
● Shenwan Hongyuan is priced at HK$3.63 per share, with total proceeds being US$1,157 million (assuming Over-Allotment Option is not exercised).
● Leveraging its close connection with Chinese investors, CMBI assisted the issuer in introducing high net worth individual investors and covered the book soon. These orders sent positive signals to the market and built up good momentum.
● This cannot be achieved without supports from various departments and local branch offices of the parent company CMB. The close cooperation among Corporate Finance Department, Equity Capital Markets Department, Asset Management Department, Equity Department, Wealth Management Department, Legal & Compliance Department, Operations Department and other departments helped a lot.
Offering Summary
| Issuer: | Shenwan Hongyuan Group Co., Ltd. |
| Listing Date: | April 26th, 2019 |
| Offering Amount: | US$1,157 million (Pre-shoe) US$1,331 million (Post-shoe) |
| Offering Price: | HK$3.63 |
| Offering Size: | 2,504,000,000 Shares (100% primary shares, 10.00% of the enlarged capital shares (Pre-shoe)) |
| Offering Structure: | International Offering 2,353,760,000 Shares (94% of the base offer size) HKPO:150,240,000 Shares (6% of the base offer size) (subject to the over-allotment option) |
| Share Type: | Ordinary Share |
| Stock Code: | 6806.HK |
About Shenwan Hongyuan
Shenwan Hongyuan is a leading investment banking focused on securities businesses in China. The Company is committed to providing diverse financial products and services to its clients, including enterprise finance, personal finance, institutional services and trading, as well as investment management.
Strong Market Influence and Brand
Since its inception in 1988, the Company completed a series of mergers and acquisitions. In its over 30 years of corporate history, the Company has accumulated deep market insights and completed many pioneering transactions.
The Company established the first securities research institute as a standalone legal entity in China in 1992. After nearly 30 years of development, its research institute is highly recognized by the industry. From 2003 to 2017, in the “New Fortune Best Analysts’ Awards” (新财富最佳分析师评选), its research institute has ranked first in the category of “Most Influential Research Institutes in China” for nine out of 15 years, and members of its research team have been awarded 234 times as the top analysts in various sectors.
Leading Position across Businesses
Leading enterprise finance business: Its “dual-layer” corporate structure consisting of an investment parent company and a securities firm enables it to provide its corporate clients with one-stop financial services and capital support in their full lifecycle. According to Wind Info, the Company ranked fifth in the industry in terms of the aggregate number of IPOs underwritten. The Company ranked first in many aspects of its NEEQ business, according to East Money.
Leading personal finance services: According to Wind Info, as of December 31, 2018, total market value of clients’ securities under its custody had a market share of 7.1%, ranking among the top three in the industry. As of December 31, 2018, the Company had 48 branch offices, 310 securities branches and 40 futures branches in China, located in 29 provinces and municipalities. The Company has an industry leading online platform. According to Analysys, in 2018, the average monthly active users of its mobile apps reached 2.8 million.
Leading institutional services and trading: The Company focuses on mainstream institutional investors. As of December 31, 2018, the Company had over 1,000 institutional clients. According to the SAC, in 2017, its revenue from trading units leasing service accounted for a market share of 4.7%, ranking fourth in the industry.
Leading investment management services: As of December 31, 2018, the AUM of its securities firm asset management business was RMB731.7 billion, ranking third in the PRC securities industry. The Company also manages 16 private investment funds, including venture capital funds, growth funds and M&A funds, with a total invested fund size of RMB4.0 billion.
Source: Prospectus, the Company’s HKEX Deal Announcements, Dealogic
