China’s SinoHytec targets to raise $193m in STAR Market IPO

Beijing SinoHytec Co., Ltd

Chinese hydrogen energy solution developer Beijing SinoHytec Co., Ltd is targeting to raise a total of 1.35 billion yuan ($193 million) in an initial public offering (IPO) on Shanghai’s Nasdaq-style STAR Market, according to a company filing with the bourse. 

SinoHytec, which kicked off its online roadshow on July 29, has offered 17.63 million common shares at a price of 76.65 yuan ($10.9) apiece. It has sold 467 million yuan ($68 million) as of July 31.

The company will invest the proceeds to develop its manufacturing base and to meet working capital needs. 

Shanghai-based Guotai Junan Securities is the lead underwriter for the deal. SinoHytec will float the shares under the symbol “688339”.

SinoHytec provides hydrogen energy products and services for the commercial vehicle space. Aside from the flagship product hydrogen fuel cell engines, the pipelines also include bipolar plates, stacks, and hydrogen systems. 

It counts Shanghai Shenlong Bus, Foton, Zhengzhou Yutong Group, Zhongtong Bus, and Zhejiang Geely New Energy Commercial Vehicles Group as its top five clients.

According to its prospectus, the firm’s annual revenues for the past three years stood at 554 million yuan ($79 million) in 2019, 368 million yuan ($53 million) in 2018 and 201 million yuan ($29 million) in 2017.  

SinoHytec CEO Guoqiang Zhang is the controlling shareholder in the company with a 25.09 per cent stake, and Tsing Innovation Capital is the second-largest shareholder having 5.40 per cent. Tsing had teamed up with a portfolio of marquee investors including ZGC Group, BAIC Capital and ChinaEquity Group collectively infusing 300 million yuan ($43 million) in SinoHytec in 2019.  

Its majority shareholders include SZ-listed Tunghsu Group (4.85%), Guochuang Hi-Tech Industrial Group (3.24%), Tsinghua University Education Foundation (2.46%). Tunghsu Group, Tsinghua University Education Foundation and a slew of investors had together invested 320 million yuan ($46 million) in the company in 2017. 

The company’s backers also include Xin Ding Capital, Hina Group, Haiyue Capital, Zhonghai Investment, 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.