Cornerstone Management, a Guangzhou, China-based private equity fund manager, has filed for a $70-million initial public offering (IPO) in the US, with plans to list on the Nasdaq.
The company did not specify how many shares it will offer but said it plans to list on the Nasdaq Capital Market under the reserved symbol “CSCA”.
Cornerstone Management said it plans to use the net proceeds of the offering primarily to support the expansion of its operations and for general corporate purposes, including hiring additional personnel and investing in sales and marketing activities, among others.
Founded in 2015, the company booked $10 million in revenue for the 12 months ended September 30, 2017.
The company focuses its investments primarily on China-based companies that are publicly listed or are seeking to list in the US, often referred to as US-China concepts stocks. It caters specifically to companies in the TMT sector such as new economy companies.
Its investments in such companies comprise all stages of the investment cycle: pre-IPO investments, IPO subscriptions, post-IPO secondary market investments, and privatizations.
“As we are a relatively young private equity fund manager in China with a limited operating history, our current business model is to identify investment targets first and raise capital to fund targeted transactions on a deal-by-deal basis as opposed to calling capital from committed investors,” the company said.
China has become one of the fastest growing nations in the world in terms of total wealth. At approximately $29 trillion in 2017, China’s total wealth held by households was the largest in Asia, and the second largest in the world as measured by household wealth, according to a report released by China Investment Corporation.
Cornerstone Management joins a growing list of Chinese firms seeking to raise funds through an IPO in the US.
Most recently, New Frontier Corporation, a Hong Kong-based blank check firm, filed for a $200-million IPO in the US, with plans to list on the New York Stock Exchange.
Another Chinese company, Beijing-based K-12 after-school tutoring services provider Puxin also announced plans to raise up to $300 million by offering American Depositary Shares in the US.
China’s used car trading platform Uxin Limited has also filed for an IPO in the US, targeting to raise up to $500 million to boost service capabilities and fund potential investments and acquisitions.
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Hong Kong-based blank check firm New Frontier files for $200m US IPO
China: Used-car trading platform Uxin eyes up to $500m in US IPO
