Chinas SinoHytec Targets To Raise $193m In STAR Market IPO

Chinese hydrogen energy solution developer Beijing SinoHytec Co., Ltd is targeting to raise a total of 1.35 billion yuan ($193 million) in an initial public offering (IPO) on Shanghai’s Nasdaq-style STAR Market, according to a company filing with the bourse. 

SinoHytec, which kicked off its online roadshow on July 29, has offered 17.63 million common shares at a price of 76.65 yuan ($10.9) apiece. It has sold 467 million yuan ($68 million) as of July 31.

The company will invest the proceeds to develop its manufacturing base and to meet working capital needs. 

Shanghai-based Guotai Junan Securities is the lead underwriter for the deal. SinoHytec will float the shares under the symbol “688339”.

SinoHytec provides hydrogen energy products and services for the commercial vehicle space. Aside from the flagship product hydrogen fuel cell engines, the pipelines also include bipolar plates, stacks, and hydrogen systems. 

It counts Shanghai Shenlong Bus, Foton, Zhengzhou Yutong Group, Zhongtong Bus, and Zhejiang Geely New Energy Commercial Vehicles Group as its top five clients.

According to its prospectus, the firm’s annual revenues for the past three years stood at 554 million yuan ($79 million) in 2019, 368 million yuan ($53 million) in 2018 and 201 million yuan ($29 million) in 2017.  

SinoHytec CEO Guoqiang Zhang is the controlling shareholder in the company with a 25.09 per cent stake, and Tsing Innovation Capital is the second-largest shareholder having 5.40 per cent. Tsing had teamed up with a portfolio of marquee investors including ZGC Group, BAIC Capital and ChinaEquity Group collectively infusing 300 million yuan ($43 million) in SinoHytec in 2019.  

Its majority shareholders include SZ-listed Tunghsu Group (4.85%), Guochuang Hi-Tech Industrial Group (3.24%), Tsinghua University Education Foundation (2.46%). Tunghsu Group, Tsinghua University Education Foundation and a slew of investors had together invested 320 million yuan ($46 million) in the company in 2017. 

The company’s backers also include Xin Ding Capital, Hina Group, Haiyue Capital, Zhonghai Investment, among others.