CMSC-backed railroad equipment developer Victall eyes $172m in Shanghai IPO

CMSC-backed railroad equipment maker Qingdao Victall Railway Co., Ltd has oversubscribed its IPO with a target to raise 1.2 billion yuan ($172 million) on the Main Board of the Shanghai Stock Exchange.

Victall, which filed for IPO prospectus on May 8, plans to issue up to 75.56 million common shares at a price of 16.14 yuan ($2.3) apiece. Ahead of the IPO, the company has sold 68 million common shares equivalent to about 1.1 billion yuan ($158 million).

Hong Kong and Shanghai dual listed China Securities is acting as the principle underwriter of the transaction. Victall will float the shares under the symbol “605001”.

Victall, formally known as Qingdao Victall Railway Decoration Materials Manufacturing, produces interior materials, modules, devices and decorations for rail traffic system like speed trains, trams and metros. Its flagship pipeline products include railway vehicle compartment interiors, kitchen system, luggage rack, cab rear partition wall and door, among others.

Headquartered in Qingdao, Victall has six subsidiaries in Greater China. Besides, it owns three units in the overseas market – Victall Holding Hamburg, Victall Transportation (Canada) and Victall (US).

The company’s earnings primarily derive from state-owned CRRC Corporation Limited (CRRC), which has 46 subsidiaries including CRRC Changchun Railway Vehicles and CRRC Tangshan. Victall also counts Siemens, rail transportation and aviation products producer Bombardier and transport equipment and services provider Alstom as its clients in the international market.

It registered annual revenue of 1.6. billion yuan ($227 million) and 234 million yuan ($33 million) in net profit in 2019.

After the IPO, individual investor Qingyan Su will remain its controlling shareholder in the company holding 24.91 per cent stake. Ruize Capital will be the second-largest shareholder having 17.34 per cent equity.

CMSC, which is an investment arm of state-owned China Merchants Securities, will own 0.62 per cent stake down 0.2 per cent. Back in 2010, CMSC had made an undisclosed equity investment in Victall.

Victall will use the proceeds to fuel the device decorations of rail transit vehicles in Qingdao and Tangshan, as well as to build an R&D centre. Besides, it aims to complement working capital.

Apart from CMSC, Victall is also backed by Hua Insurance, Winning Capital and Bund Capital.

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.