PE-backed China Cinda set for $2.5bn IPO

The $2.5bn  IPO will be Hong Kong’s largest this year.

China Cinda Asset Mangaement has attracted 10 cornerstone investors for a planned IPO on the Hong Kong Stock Exchange, according to a preliminary prospectus released to China’s First Financial Daily. 

Norway’s sovereign wealth fund has committed $150 million, Och-Ziff Capital Management $200 million and Oaktree Capital ($53 million). They are among 10 cornerstone investors who have together pledged to buy about $1.1 billion of the company when it launches its IPO, according to the preliminary propsectus.

Cinda is a non-performing loan manager in China, which was established to absorb the non-performing loans of the country’s four largest state-owned banks. 

Among Cinda’s current shareholders are Boyu Capital, CITIC Capital Partners, Standard Chartered Private Equity and China’s National Social Security Fund, according to S&P Capital IQ.

Cinda is set to price the offer on December 4.

The IPO is expected to raise $2.45 billion. Cinda is currently offering 5.3 billion shares and set a range of HK$3.00 to HK$3.58 per share.