China’s Henan Lantian Gas Co. raises $151m ahead of STAR Market IPO

Chinese natural gas services operator Henan Lantian Gas Co.,Ltd has raised 980 million yuan ($151 million) ahead of an initial public offering (IPO) on China’s Nasdaq-style STAR Market, per a company filing on Tuesday.

The gas operator, which kicked off its subscription exercise on January 20, has sold a total of 65.5 million common shares at 14.96 yuan ($2.31) apiece to IPO subscribers before the listing.

Lantian plans to invest the IPO proceeds in its natural gas projects in the rural areas of East China’s Henan province. 

State-owned China Merchants Group’s China Merchants Securities (CMS) is the principal underwriter for the deal, while Central China Securities joins hand with CMS serving as the joint underwriters. Lantian will float shares under the symbol “605368”.

Lantian, established in 2002, operates natural gas businesses for corporates and households primarily across Henan’s urban districts, besides rural areas. Its gamut of solutions include gas pipeline installment, gas transmission, maintenance, and distribution. 

According to its prospectus, Lantian’s annual revenues stood at 2.5 billion yuan ($388 million) in 2017, 3.2 billion yuan ($495 million) in 2018, and 3.6 billion yuan ($561 million) in 2019. In the first half of 2020, Lantian also clocked 1.8 billion yuan ($276 million) in sales. 

After the IPO, Lantian Group will maintain its controlling shareholding in Henan Lantian with a 52.61% stake, followed by Xinhua Li, who is the actual controller in Lantian with direct equity interest of 7.22%, down 1.19%. 

Lantian has so far closed three rounds of funding from Songshan Capital — a joint investment firm co-launched by conglomerate Central China, Baixiang Food and others — Beijing-based JT Asset Management, and Shanghai-listed JD Capital, among others. 

Singapore Reporter/s

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

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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.