China Renaissance Seeks Up to $377 Million in Hong Kong IPO

(Bloomberg) -- China Renaissance Holdings Ltd., the boutique investment bank focused on new-economy deals, is seeking to raise as much as $377 million in its Hong Kong initial public offering.

The Beijing-based firm is offering 85 million shares at HK$31.80 to HK$34.80 apiece, according to terms for the deal obtained by Bloomberg on Thursday. Three cornerstone investors including Alipay, the digital payments company backed by billionaire Jack Ma, have agreed to invest about $125 million combined, the terms show.

China Renaissance, founded in 2005 by former Morgan Stanley banker Bao Fan, is an early investor in a number of Chinese technology companies including restaurant review and delivery giant Meituan Dianping.

Alipay and Snow Lake Capital have each committed to purchase about $50 million of stock in China Renaissance’s offering, according to the terms. LGT Group, a private bank and asset management company owned by the Liechtenstein royal family, has agreed to buy about $25 million of shares.

China Renaissance plans to use 40 percent of the proceeds to expand its investment banking operations, the terms show. Another 20 percent will go toward its investment management unit, while 20 percent will be used to develop its wealth management business. The remainder will be used for technology infrastructure spending and general corporate purposes.

The company plans to price the offering Sept. 20 and begin trading Sept. 27. Goldman Sachs Group Inc. and ICBC International Holdings Ltd. are joint sponsors of the offering, while China Renaissance is acting as sole financial adviser, according to a preliminary prospectus.

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