Cinda-backed Sanfeng Environment eyes $363m in Shanghai IPO

Sanfeng Environment

Chongqing Sanfeng Environment Group Corp., Ltd, a provider of waste management services, seeks to raise as much as 2.6 billion yuan ($363 million) in an initial public offering (IPO) on the Main Board of the Shanghai Stock Exchange (SSE).

Backed by HK-listed China Cinda Asset Management, Sanfeng plans to sell up to 378 million common shares at a price of 6.84 yuan ($0.9) apiece, per a filing with the board.

The company kicked off its online roadshow for the IPO exercise on May 19, and according to its latest filing on Wednesday, it offered 37,826,000 shares for individual investors online, while the rest of 340,442,000 shares were bought by institutional investors offline. Sanfeng has sold about 337 million shares.

With the proceeds, Sanfeng plans to finance three waste incineration power plants in Chongqing, Shanwei and Dongying. In addition, Sanfeng will also fuel working capital.

Established in 1998, Sanfeng is engaged in waste management and renewable energy businesses. Its services include waste combustion, operational management, power plant investment, among others. The company claims to have managed a total of 48,950 tons of waste each day, and so far, it has invested in 43 power plant projects.

Sanfeng’s subsidiary Chongqing Sanfeng Covanta Environmental Industry recently made headlines along with three other companies including state-owned China Harbour for winning the bid for the construction of $321 million waste combustion center launched by Macau Environmental Protection Bureau, per its press release in March 2020.

After the IPO, state-owned Derun Environment will remain its largest shareholder with 43.8606 per cent equity interest, while the second-largest shareholder CITIC Group’s subsidiary CITIC Environment Investment Group will have 12.0816 per cent stake.

Additionally, China Cinda (3.6368%), Cinda’s investment unit Cinda Capital (0.3029%), and Xizheng Investment (2.4245%) will be its majority shareholders. Previously, in 2018, the three firms made an undisclosed strategic investment in Sanfeng.

State-owned China Securities is acting as its lead underwriter for the deal. The company will float the shares under the symbol “601827”.

 

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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.