China IPO Digest: Ruixin Lists On ChiNext; Raycloud Seeks To Raise $61m

Aluminum alloy products supplier Tianjin Ruixin Technology listed at a premium on the ChiNext board in Shenzhen, while Alibaba-backed SaaS developer Hangzhou Raycloud Technology has kicked off its  STAR Market IPO process. 

Ruixin raises $48m in ChiNext IPO

Aluminum alloy products supplier Tianjin Ruixin Technology Co., Ltd on Friday made a trading debut on the ChiNext board of the Shenzhen Stock Exchange after raising 338 million yuan ($48 million) in its IPO. 

Ruixin sold 27.57 common shares at 12.26 yuan ($1.7) apiece. It opened at 14.71 yuan ($2.07), up 19.98 compared to the IPO price, per a filing with the bourse. 

The company’s shares are listed under the symbol “300828”. SZ-listed Guosen Securities was the principal underwriter of the deal. 

Founded in 2014 by Zhanchang Guo, Ruixin is a supplier of precision aluminum alloy products and components, such as heatsinks, medical equipment components, safety material of automobile lightweight and fluid control. Its products are also exported to India and Indonesia. 

Its clients include ABB, Schneider, Rockwell, Siemens, GE, Philips, Panasonic, Fujitsu, Emerson, Aisin, Alcan, among others. 

Headquartered in Tianjin, Ruixin has set up a subsidiary Ruixinchang Light Alloy (Changshu) Co., Ltd. located at East China’s Jiangsu province.

Ruixin will allocate the IPO proceeds to develop the aluminum alloy programme in Changshu. 

The company’s backers included state-owned BAIC Group’s investment vehicle BAIC Capital, Hong Kong and Shanghai dual-listed Industrial Securities, Shanghai-based GS Capital. 

Alibaba-backed Raycloud seeks to raise $61m in STAR Market 

Alibaba-backed software-as-a-service (SaaS) developer Hangzhou Raycloud Technology Co.,Ltd has kicked off its IPO subscription exercise with a target to raise 433 million yuan ($61 million) on the Nasdaq-like STAR Market of the Shanghai Stock Exchange.

Raycloud will offer up to 40.10 million shares at 10.8 yuan ($1.5) apiece. 

HK-listed China International Capital Corporation Limited (CICC) is acting as a lead underwriter of the issue.

The company offers SaaS products and solutions for e-commerce companies. Alibaba Group’s Taobao and Tmall have been contributing to over 86 per cent of earnings for four years in a row. 

The company recorded annual revenue of 337 million yuan ($48 million) and a net profit of 62 million yuan ($8.8 million) as of September 2019, per its prospectus. 

After the IPO, Hangzhou Raycloud Investment will remain the controlling shareholder in Raycloud holding 38.48 per cent stake. Ningbo-based Qiyu Investment Management will be the second-largest shareholder with 11.25 per cent. 

Alibaba will also hold 4.32 per cent stake in the company, down 0.48 per cent. Previously in 2017, Alibaba had joined hands with YF Capital (4.41%) and SAIF Partners China (0.9%) to invest in Raycloud. Raycloud had also collected money from CICC, Cowin Capital and Lan Jiang Investment in its Series A and angel rounds.