Chinese high-tech manufacturer Juheshun raises $79m in Shanghai IPO

Closeup of a traditional Chinese statue with the Shanghai skyline in the background. Photo: Xi Xin Xing

Hangzhou Juheshun New Material Co Ltd, a Chinese firm that manufactures synthetic fibres, has raised 556 million yuan ($79 million) in an initial public offering (IPO) on the Main Board of the Shanghai Stock Exchange (SSE) on Thursday.

Juheshun, which had filed an IPO application as early as April 2019, offered nearly 78.89 million shares at 7.05 yuan ($1) apiece.

Juheshun was founded in 2013 to primarily engage in the research and development, production, and sale of polyamide-6 slices – one of the most widely-used engineering thermoplastics known for its high strength, good fatigue resistance, good water absorption and chemical stability.

The company registered almost 2.43 billion yuan ($343 million) in revenue in 2019, up 20.30 per cent compared to a year ago. Its net profit increased by 4.20 per cent to reach 100 million yuan ($14 million) last year, shows the prospectus.

Compared to the same period in 2019, the company estimated an up to 11.64 per cent decline in revenue in the first half of 2020 to somewhere between 1 billion yuan ($141 million) and 1.13 billion yuan ($160 million).

The firm said that its revenue could bounce back in the second half of the year as China recovers from the impact of the pandemic.

The company chairman Fu Changbao is the largest shareholder with a combined 37.87 per cent stake through direct and indirect holdings after the IPO.

GF Qianhe, which invested in Juheshun’s pre-Series A round in 2018, saw its shareholding in the company diluted from 3.51 per cent to 2.63 per cent in the offering. GF Qianhe is an alternative investment subsidiary of Hong Kong-listed GF Securities.

Shares of Juheshun are listed under the symbol “605166.” GF Securities served as the bookrunner of the deal.

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.