ChiNext stock eyes first HK listing

摘要

Brand management firm bluefocus communication group is to be the first company listed on China's Nasdaq-style second board to seek a Hong Kong listing. BlueFocus, which is listed on the Shenzhen Stock Exchange's ChiNext board, secured board approval last Tuesday to list on the main board of the Stock Exchange of Hong Kong. If successful, the transaction is expected to set a precedent for other high-growth mainland companies looking to access overseas capital. The company plans to offer 25% of its enlarged capital, or about 322m H-shares, based on its current total equity of 965m. That puts the proposed float at up to Rmb8.25bn (US$1.34bn), based on the company's closing price of Rmb25.62 last Thursday. The actual size of the deal, however, is more likely to be around US$500m, depending on valuations and market conditions, according to bankers on the transaction. Credit Suisse and Morgan Stanley have been hired to arrange the planned HK listing, which could come as early as the first quarter of next year.