China IPO digest: DKEM raises $56m on ChiNext; Crastal Tech seeks $45m

Shenzhen, China. Photo by Robert Bye on Unsplash

Chinese electronic materials supplier DK Electronic Materials (DKEM) has raised $56 million in an initial public offering (IPO) on the ChiNext market, while home appliances supplier Crastal Technology is all set for its bell-ringing ceremony this Friday.

Electronic materials supplier DKEM raises $56m in ChiNext IPO

DKEM, a Chinese developer and supplier of electronic materials, rang the bell on Shenzhen’s startup board ChiNext on Thursday after raising 399 million yuan ($56 million) in an IPO.

The company sold a total of 25 million shares at a price of 15.96 yuan ($2.25) apiece in the offering.

Established in 2010, DKEM is engaged in the research and development, production, and sale of electronic paste and other electronic materials in photovoltaics, display and lighting, and semiconductor industries. Its major products are front silver metallization paste for silicon solar cells.

The company is based in eastern China’s Wuxi city with a global R&D centre in California and a wholly owned subsidiary in Tokyo.

Following the listing, the company’s chairman Shi Weili remains its largest shareholder with a combined 35.60 per cent stake through direct and indirect holdings.

Shenzhen-based venture capital firm Oriental Fortune Capital owns a 6.45 per cent stake through two investment platforms. Investment vehicles managed by semiconductor fund China Fortune-Tech Capital and Beijing-based Hua Capital Management are among its minority shareholders.

DKEM registered 220 million yuan ($31 million) in revenue in the first quarter of 2020, down 8.31 per cent compared with the same period in 2019, according to its prospectus. The net profit attributable to shareholders stood at 35 million yuan ($5 million) in the first three months.

The lower revenue in Q1, the Chinese electronic materials producer said, was largely due to the pandemic which had impeded its downstream clients from resuming businesses after China’s originally week-long Lunar New Year holiday.

The company is expected to book a revenue of no more than 520 million yuan ($73 million) in the second half of 2020, which represents an up to 16.71 per cent decrease from a year ago.

Its shares are listed under the symbol “300842.” Hong Kong-listed Everbright Securities, which is controlled by Chinese state-owned financial conglomerate China Everbright Group, served as the lead underwriter for the deal.

Home appliance maker Crastal sets sight on $45m ChiNext IPO

Crastal Technology, a Chinese home appliance developer and manufacturer that operates under the brand Buydeem, is all set for an IPO on Shenzhen’s ChiNext market this Friday.

The company plans to sell 54.35 million shares at a price of 5.91 yuan ($0.83) per share, which amounts to an offering size of over 321 million yuan ($45 million).

Crastal Technology was founded in May 2003 to operate as a manufacturer and distributor of kitchen appliances that mainly include toasters, electronic kettles, electronic food steamers and electronic stoves.

Its largest clients include US home appliance firm Whirlpool Corporation, Australian small home appliance brand Breville, and UK-based Morphy Richards.

The company reported 551 million yuan ($78 million) in revenue in 2019, down 9.23 per cent from about 607 million yuan ($86 million) a year ago.

Its net profit was almost 66 million yuan ($9 million) in 2019, representing a year-on-year decrease of 2.94 per cent, according to its prospectus.

After the IPO, George Zhang Mohan, founder and chairman of Crastal Technology, will remain its the largest shareholder with a 28.06 per cent stake through Crastal Electric Group Limited. His father Zhang Bei will be the second-largest shareholder with a 24.30 per cent stake.

The company will float shares under the symbol “300824.” China’s Zhongshan Securities serves as the lead underwriter for the deal.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.