Post on 30-May-2018
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News release
Chinese Enterprises IPOs Surge in Q3; 46 Enterprises Listed
Overseas; VC/PE Exits Increasingly Active
Zero2IPO Research Center Oct. 27, 2009 Beijing
According to the China Enterprises IPO Report Q3 2009 recently released by Zero2IPO
Group, a famous research, advisory and investment institution focusing on VC and PE
industries in Greater China Region, 46 Chinese enterprises went public on 13 overseas
markets and two domestic markets which Zero2IPO Research Center focuses on in
Q309, raising a combined US$20.71B, or US$450.25M on average. With the recovery of
the overseas market and the resumption of domestic IPOs, Q3 witnessed a surge in the
number of Chinese enterprises listed at home and abroad, with both the number of
listings and the amount raised therein reaching a relatively high level since 2008. To be
specific, the number of IPOs was only smaller than that of Q108, but was up by 18 year-
on-year and 35 quarter-on-quarter. The amount raised hit a new high since 2008,
increasing by 5.78 times from a year earlier and 7.82 times from a quarter ago. (See
Chart 1)
By market, 18 of the 46 listed enterprises went public on foreign markets1, raising a
collective RMB6.60B, an increase of eight in terms of IPO number and 5.22 times in the
amount raised. The domestic market also saw 28 listings, ten more from a year earlier,
raising a total of US$14.11B, an increase of 6.08 times year-on-year. (See Table 1)
In Q309, 14 of the 46 listed Chinese companies were backed by VC/PE investment,
garnering a total of US$1.85B. Compared from the same period last year, the number of
listed VC/PE-backed enterprises was up by four and the amount raised rose 158.9%.
Table 1 Chinese Enterprises Domestic and Overseas IPOs in Q30 9
ListingMarket
Financing Amt.(US$M)
% ofTotal
No. ofIPOs
% ofTotal
Average
Financing Amt.
(US$M)
DomesticMarket
14,111.33 68.1% 28 60.9% 503.98
OverseasMarket
6,600.28 31.9% 18 39.1% 366.68
Total 20,711.61 100.0% 46 100.0% 450.25
Source: Zero2IPO Research Center 2009.10 www.zero2ipo.com.cn
Chart 1 Quarter-on-quarter Comparison of Chinese Enterprises Domestic and
Overseas IPOs (Q108-Q309)
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News release
Overseas IPOs and Amount Raised on Continuous Rise, with High
Concentration in Market and Industry
In Q309, overseas markets kept warming up and IPOs moved on steadily in countries
around the world. Under this context, Chinese enterprises grow increasingly active ingetting listed overseas. Altogether 18 Chinese enterprises went public on three overseas
markets, collecting a total of US$6.60B. Year-on-year, the number of listings was up by
eight and the amount raised jumped 5.22 times; quarter-on-quarter, the number of IPOs
rose by seven and the amount raised surged 181.1%. (See Chart 2)
Chart 2 Quarter-on-quarter Comparison of Chinese Enterprises Overseas IPOs
(Q108-Q309)
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News release
In terms of market breakdown, Chinese enterprises became more concentrated in terms
of listing markets, and the 18 enterprises were mainly listed on three markets: HKMB,
NASDAQ, and SGX. HKMB attracted a majority of these enterprises, with 11 IPOs
collecting US$5.42B, which accounted 61.1% of the total number of Chinese enterprises
overseas IPOs and 82.1% of the amount raised thereby. Four Chinese enterprisesdebuted on NASDAQ, collecting US$1.07B, representing 22.2% and 16.3% of the total
respectively. SGX also saw the listing of three Chinese enterprises which collected a
humble US$108.47M, accounting for 16.7% and 1.6% of the total respectively. (See
Table 2)
Table 2 Chinese Enterprises Overseas IPOs in Q309 by Market
ListingMarket
FinancingAmt.
(US$M)
% ofTotal
No. ofIPOs
% ofTotal
Average
Financing Amt.
(US$M)
HKMB 5,417.19 82.1% 11 61.1% 492.47NASDAQ 1,074.63 16.3% 4 22.2% 268.66SGX 108.47 1.6% 3 16.7% 36.16Total 6,600.28 100.0% 18 100.0% 366.68
Source: Zero2IPO Research Center 2009.10 www.zero2ipo.com.cn
By industry, Traditional sector continue to lead in both number of IPOs and amount
raised. A total of 13 Traditional enterprises went public in this quarter, raising a combined
US$4.36B, taking up 72.2% of the total number of IPOs and 66.0% of the total amount
raised. Quarter-on-quarter, the number of Traditional listings was up by six, and the
financing amount jumped 141.2%. The number of Broad IT debuts also registered aconspicuous rise from Q2, with three IPOs collecting a total of US$1.11B up by two and
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8.21 times respectively. Both Clean-tech and Services witnessed a decline in the number
of IPOs and financing amount. The number of Clean-tech debuts was down by one and
the financing amount decreased by 96.0%. Services had no Chinese debut in this
quarter. (See Chart 3)
Table 3 Industry Breakdown of Chinese Enterprises Overseas IPOs in Q309
Industry(Grade 1)
FinancingAmt. (US$M)
% ofTotal
No. ofIPOs
% ofTotal
AverageFinancing Amt.
(US$M)
Traditional 4,356.68 66.0% 13 72.2% 335.13
Bio/Healthcare 1,126.56 17.1% 1 5.6% 1126.56
Broad IT 1,105.56 16.8% 3 16.7% 368.52
Clean-tech 11.48 0.2% 1 5.6% 11.48
Total 6,600.28 100.0% 18 100.0% 366.68
Source: Zero2IPO Research Center 2009.10 www.zero2ipo.com.cn
Domestic IPO Market Restarted; Financing Amount Hits News on Both
Shanghai and Shenzhen Bourses
In Q309, Along with a steady recovery in domestic economy and the launch of the
Growth Enterprise Market (GEM), great progress wad made in the IPO system reform,
domestic IPO market was restarted, and Chinese enterprises domestic IPOs moved on
in a orderly way. In this quarter, 28 enterprises got listed on two domestic capital markets,
garnering a US$14.11B in total, or US$503.98M on average. Thanks to issue of large-
cap stocks by China State Construction Engineering Corporation (CSCEC) and
Metallurgical Corp. of China Ltd. (MCC), the financing amount reached a quarterly record
in Q309 since 2008. Also in this quarter, ten more Chinese enterprises went public on
domestic markets than on overseas markets, and the financing amount on domestic
market was 2.14 times that on overseas market. (See Chart 3)
Chart 3 Quarter-on-quarter Comparison of Chinese Enterprises Domestic and
Overseas IPOs (Q108-Q309)
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In Q3, most of the domestically listed enterprises were small- and medium-sized. Except
for the four debuts on the Shanghai Stock Exchange, 24 of the 28 enterprises listed at
home went public on the Small and Medium Enterprise Board (SMEB) on the Shenzhen
Stock Exchange, raising US$2.12B in total, or US$88.39M on average. (See Table 4)
Table 4 Chinese Enterprises Domestic IPOs in Q309
Listing Market FinancingAmt. (US$M)
% ofTotal
No. of IPOs % ofTotal
Average
Financing Amt.
(US$M)
Shanghai StockExchange
11,989.99 85.0% 4 14.3% 2,997.50
Shenzhen SMEB 2,121.34 15.0% 24 85.7% 88.39
Total 14,111.33 100.0%
28 100.0%
503.98
Source: Zero2IPO Research Center 2009.10 www.zero2ipo.com.cn
By industry, Traditional sector remained on the top in both the number of IPOs and
amount raised, with 13 Traditional debuts collecting US$11.32B, which accounted for
46.4% of the total IPOs and 80.2% of the total amount raised. Broad IT followed with six
listings. Bio/Healthcare, Services and Clean-tech respectively reported four, three and
two debuts. (See Table 5)
Table 5 Industry Breakdown of Chinese Enterprises Domestic IPOs in Q309
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Industry(Grade 1)
FinancingAmt.
(US$M)
% ofTotal
No. of IPOs % ofTotal
Average FinancingAmt. (US$M)
Traditional 11,323.07 80.2% 13 46.4% 871.01
Services1,882.49 13.3% 3 10.7% 627.50
Bio/Healthcare 439.63 3.1% 4 14.3% 109.91
Broad IT 337.98 2.4% 6 21.4% 56.33
Clean-tech 128.17 0.9% 2 7.1% 64.08
Total 14,111.33 100.0%
28 100.0%
503.98
Source: Zero2IPO Research Center 2009.10 www.zero2ipo.com.cn
VC/PE-backed IPOs up Steadily; Domestic and Overseas Exits by Investment
Institutions Increasingly Active
With the steady recovery of overseas IPO market and the resumption of domestic IPOs,
there has been an apparent rise in the number of IPOs by VC/PE-backed Chinese
enterprises and the amount raised thereby. In Q3, altogether 14 VC/PE-backed Chinese
enterprises got listed overseas, collecting a total of US$1.85B. Both the number of IPOs
and financing amount reached record highs since 2008. On a year-on-year basis, the
number of VC/PE-backed enterprises was up by four and the financing amount rose
158.9%. On a quarter-on-quarter basis, the number of IPOs was up by nine and the
financing amount by 4.5%.
Among14 VC/PE-backed Chinese enterprises; four were listed on HKMB, and ten on
Shenzhen SMEB. The listings of these enterprises will allow 31 VC/PE investment funds
to exit their investment on the secondary market, providing an average rate of return on
investment of 4.06 times. To be specific, overseas listed enterprises provided investors
an average rate of return on investment of 3.97 times, and the figure for the domestically
listed ones stood at 4.13 times. (See Table 4 and Table 6)
Chart 4 Quarter-on-quarter Comparison of VC/PE-backed Chinese Enterprises
Domestic and Overseas IPOs (Q108-Q309)
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Quarter-on-quarter Comparison of VC/PE-backed Chinese Enterpri
Domestic and Overseas IPOs (Q108-Q309)
1,055.98
1,209.90
716.44
437.42
1,774.771,854.98
141.19
14
10
1
5
14
10
2
0.00
400.00
800.00
1,200.00
1,600.00
2,000.00
Q1'08 Q2'08 Q3'08 Q408 Q109 Q209 Q3'09
Source: Zero2IPO Res earch Center 2009.10 www.zero2ipo.com.cnTable 6 VC/PE-backed Chinese Enterprises Domestic and Overseas IPOs in Q309
CompanyName
ListingDate
Listing Market Industry Financing Amt.(US$M)
VC/PE Fund
Chigo 2009-7-13 HKMB TraditionalHome Applicance
21.24 High Surplus (VC)
Your-Mart 2009-7-17 ShenzhenSMEB
Services
(Retail)
143.34 Sunbridge (PE),Shanghai Xinmeng(PE)
BBMG 2009-7-29 HKMB Traditional(Materials)
768.34 New Horizon (PE)
AccelinkTechnologie
s
2009-8-21 ShenzhenSMEB
Broad IT
(Opto-electronics)
93.70 Changyuan Yingjia(VC)
WorldUnionProperties
2009-8-28 ShenzhenSMEB
Traditional
(Real Estate)
92.20 SCGC (VC), CowinCapital (VC),
Greenwoods AssetManagement (PE)
ChaohuaTech
2009-9-3 ShenzhenSMEB
Broad IT
(Other Electronic
Products)
38.98 SRSI (VC), OFC (VC),
Seasonal Capital (VC)
SuccessElectronics
2009-9-3 ShenzhenSMEB
Broad IT
(Opto-electronics)
43.01 CMTECH (VC), ZichenInvestment (VC)
HSSM 2009-9-3 ShenzhenSMEB
Clean-tech
(New Materials)
85.48 Yuan Feng VentureCapital (VC)
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SaturdayShoes
2009-9-3 ShenzhenSMEB
Traditional
(Clothing)
144.95 Sure JoyceLimitedVC1
China AllAccess
2009-9-16 HKMB Broad IT(Retial)
51.61
ChengweiVC
Jingyi Metal 2009-9-29 ShenzhenSMEB
Traditional
(Smelting/Processing)
68.52 Guangdong TechnologyVC (VC)
Boyun NewMaterial
2009-9-29 ShenzhenSMEB
Clean-tech
(New Materials)
42.69 Hunan Xiangtou High-tech VC (VC), GZVC
(VC), Cowincapital(VC)
XinlongElectrical
2009-9-29 ShenzhenSMEB
Traditional
(Electronic
Equipment)
38.95 Hefei InnovationInvestment (VC)
Peak Sports 2009-9-29 HKMB Traditional
(Clothing)
221.97 Sequoia Capital (VC)2, ProIPO (PE), CCBI(PE), SCGCVC3,
Legend Capital4
Source: Zero2IPO Research Center 2009.10 www.zero2ipo.com.cn
NoteBeginning from Q109, Zero2IPO Research Center has increased the number of
overseas markets it focuses on from 11 to 13, including NASDAQ, NYSE, LSEMB, AIM,
HKMB, HKGEM, SGX, Catalist, TSE, Mothers, KSM, KOSDAQ, FWB. LSEMB and
KSEMB are the newly included.
About Zero2IPO Research Center
Founded in November 2001, Zero2IPO Research Center provides professional research
reports and customized industry reports for VC and PE funds, government organizations,
intermediaries and startup enterprises in Greater China Region. The centers research
scope covers VC, PE, IPO, M&A and high-tech industries. It has grown into the most
professional and authoritative research institution in China.
Statement on Republication:
The article is publicly released to media by Zero2IPO Group. Please identify the source
as "Zero2IPO China Enterprises IPOs Report Q3 2009". Any questions and suggestions
on data and research, please contact Ms. Leaf Zhang by phone or email:
Tel: +86 10 84580476
Email: research@zero2ipo.com.cn
1Note: Sure Joyce Limited is a wholly-owned subsidiary of LC Fund III,L.P.2 Sequoia Capital invested in Peak Sports via six funds: Sequoia Capital China I, L.PSequoia Capital ChinaPrincipals Fund I, L.P.Sequoia Capital China Partners Fund I, L.PSequoia Capital China Growth FundI, L.PSequoia Capital China GF Principals Fund I, L.PSequoia Capital China Growth Partners Fund I,
L.P.3SCGC is a wholly-owned subsidiary of the Shenzhen Capital (Hong Kong) Company Limited, which iscontrolled by Shenzhen Capital Group Co., Ltd.4 Legend Capital invested in Peak Sports via LC Fund IV, L.P under its flag.
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If in republication please mail two sample copies to:
Nicole Meng
Rm.1202/03, Tower A, Eagle Run Plaza, No.26, Xiaoyun Road, Chaoyang District,
Beijing 100125Or email the website link of your article to nicolemeng@zero2ipo.com. Thank you.
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