New Frontier Corporation, a Hong Kong-based blank check company founded by former Blackstone executive Anthony Leung, has filed for a $200-million initial public offering in the US, with plans to list on the New York Stock Exchange.
The company, which was formed early this year to acquire a healthcare, technology, or education business, plans to raise $200 million by offering 20 million units at a price of $10, which will give it a market value of $295 million.
Each unit consists of one Class A ordinary share and one-half of one redeemable warrant. Each whole warrant entitles the holder to purchase one Class A ordinary share at a price of $11.50 per share, subject to adjustment, the company said.
In its filing, New Frontier said the proceeds of the IPO may be used for its planned acquisitions of companies in the healthcare, technology or education sectors in China, which it refers to as the Chinese new economy sectors.
“We believe that China is entering a new era of economic growth, particularly in the Chinese new economy sectors, which we expect will result in attractive initial business combination opportunities for us,” the company said.
It added that the growth will be driven by private sector expansion, technological innovation, increasing consumption by the middle class, structural economic and policy reforms and demographic changes in China.
New Frontier plans to list on the NYSE under the symbol NFC.U.
The company’s chairman, Leung, is also the group chairman of Nan Fung Group, a Chinese conglomerate engaged in real estate and investment business. From 2007 to 2014, Leung was the senior managing director and chairman for Greater China of The Blackstone Group, where he was responsible for growing Blackstone’s business in Asia.
He also served as the Financial Secretary of Hong Kong from 2001 to 2003.
New Frontier Corporation now joins a list of Chinese companies applying for multi-million-dollar IPOs in the US.
Recently, Beijing-based K-12 after-school tutoring services provider Puxin announced it plans to raise up to $300 million by offering American Depositary Shares (ADS) 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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