US private equity firm Carlyle stands to make a five-fold return on its investment in life insurance company China Pacific Insurance as the company raises $3.1bn in year’s seventh biggest IPO, according to reports.
According to sources familiar with the situation, China Pacific sold 861.3 million shares – a 10.2 per cent of its enlarged share capital – at HK$28 ($3.6) each.
Carlyle’s total investment of $800m is now worth $4.7bn based on the Hong Kong IPO price, meaning that Carlyle stands to make a six times return on its original investment. However, the firm has reportedly not sold any shares in the IPO and is locked in to the investment for another year. The firm is reportedly in no hurry to exit the company.
The firm announced that three of the portfolio companies managed by Carlyle Asia Growth Capital Partners have successfully completed IPOs in Hong Kong and New York in December, raising a combined gross proceeds total of nearly $780m. The three companies were China Forestry Holdings which raised $200m, Kaisa Group Holdings, which raised $445m, and Concord Medical Services Holdings, which raised $132m.
Wayne Tsou, managing director and head of Carlyle Asia Growth Capital group, said, said, “These IPOs are milestones for China Forestry, Kaisa and Concord. The broad participation in the IPOs by a large number of quality institutions and retail investors stands testament to the strong growth potential of these companies and their leadership in the market.”
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