Financial services platform Linklogis Inc. launched its Hong Kong IPO on Friday, looking to raise up to HK$8.3 billion ($1.07 billion).
Backed by Chinese gaming giant Tencent (OTC: TCEHY; HKEX: 00700), the company is selling 452.9 million shares at HK$16.28 to HK$18.28 each, a filing with the Stock Exchange of Hong Kong shows.
There is also a greenshoe option on the deal that will allow the additional sale of 67.9 million shares, which would raise another $159.6 million.
So far, the share sale has locked in six cornerstone investors, who subscribed for a cumulative $365 million worth of stock. That includes BlackRock Inc. and Fidelity, each to purchase $100 million worth of shares. Three others including The Ontario Teachers’ Pension Plan Board, Sequoia China, and Janus Henderson Funds will buy $50 million worth of stock each.
Goldman Sachs Group Inc. and China International Capital Corp. are the joint sponsors on the offering.
Ahead of the IPO, Tencent held a 19% stake in Linkolgis. Other big investors in Linkolgis are GIC, CITIC Capital, and Standard Chartered.
According to its prospectus, Linkolgis generated 1.03 billion yuan ($157.47 million) in revenues in 2020, up from 699.59 million yuan in the previous year. It gets most of its revenues from its Anchor Cloud and FI Cloud. Linkolgis has yet to show a profit.
In China, Linkolgis claims it ranked first among technology solution providers, in terms of supply chain finance transactions processed in 2020. Total transactions amounted to 163.8 billion yuan last year, which accounted for a 21% market share, the company said, citing the CIC.
Linkolgis plans on pricing its offering on Mar. 31 and then begin publicly trading in Hong Kong on April 9.