International Business News – Recently, another Chinese company successfully listed in the UK.
British Investor (July 13, 2022) was informed that Mingyang Smart Energy Group Co., Ltd. (referred to as Mingyang Smart), a Chinese wind turbine manufacturer, will officially land on the main board of the London Stock Exchange today (July 13). , the stock code is MYSE.
Last Friday (July 8), Mingyang Intelligence submitted a Publication of a Prospectus on the London Stock Exchange, stating that it would be listed in London by issuing Global Depositary Receipts (GDR).
After the completion of this GDR issuance, Mingyang Intelligence will also become the 4th Chinese company listed on the main board of the London Stock Exchange through the “Shanghai-London Stock Connect”.
According to the information on the official website of the London Stock Exchange, Mingyang Intelligence issued a total of 31,280,500 GDRs in this listing. Each GDR represents 5 A shares of the company’s underlying securities, and the corresponding number of new A shares of the underlying securities is 156,402,500 shares.
Before the exercise of the over-allotment option, the company’s total share capital was changed to 2,260,185,706 shares after the listing of the newly added underlying securities A shares corresponding to the GDR issued by the company.
Based on the price of US$21 per GDR, Mingyang Intelligence will raise a total of US$656.89 million in this listing.
According to the over-allotment option arrangement, Mingyang Smart can also issue additional GDRs by exercising the over-allotment option and raise additional funds of no more than US$50 million. It is assumed that the over-allotment option is fully exercised (the corresponding number of GDR issuance is 2.38 million).
Mingyang Intelligence also stated in the prospectus that the purpose of this issuance of GDR to raise funds is to:
- About 60% of the net proceeds will be used to enhance the Group’s wind turbine manufacturing and sales capabilities (including research, manufacturing and sales of the Group’s wind turbines);
- About 20% of the net proceeds will be used to promote the Group’s internationalization strategy;
- About 10% of the net proceeds will be used to enhance the group’s photovoltaic, energy storage and hydrogen energy capabilities;
- About 10% of the net proceeds will be used for working capital and general corporate purposes.
UBS, HSBC and CLSA are the joint global coordinators and joint bookrunners of Mingyang Intelligence; CICC and Haitong International are the joint bookrunners; Tianyuan and Linklaters are the Chinese lawyers and the company’s British lawyers respectively.
The prospectus also shows that Mr. Zhang Chuanwei, Ms. Wu Ling (Zhang Chuanwei’s wife), and Mr. Zhang Rui (Zhang Chuanwei’s son) were the substantial controllers in Mingyang Smart’s shareholder structure before its listing on the London Stock Exchange.
In the three fiscal years of 2019, 2020, 2021 and the first quarter of 2022, Mingyang Smart’s operating income was 10.493 billion, 22.457 billion, 27.158 billion and 7.029 billion yuan, respectively, and the corresponding net profit was 661 million , 1.304 billion, 2.959 billion and 1.406 billion yuan.
Who is Mingyang Intelligence?
Mingyang Intelligent was established in 2006 and is headquartered in Zhongshan, Guangdong, China.
The company is a Chinese A-share listed company, ranking 18th among the top 500 global new energy companies in 2021, and ranking first in the global offshore wind power innovation ranking.
In 2020, Mingyang Smart opened a business and engineering center in Hamburg, Germany.
In 2021, Mingyang also won a wind turbine manufacturing contract in Italy and successfully entered the European offshore wind power market.
For the UK, Mingyang Smart said that the company is very interested in using UK engineering technology, manufacturing components and other services to develop its local supply chain.
Mingyang Intelligence has deployed five centers around the world, namely Beijing, Shanghai, Shenzhen, Silicon Valley in the United States, and Hamburg in Germany. A base for R&D, complete machine parts manufacturing and engineering services.
In December 2021, Mingyang Smart and the UK Department for International Trade (DIT) signed a memorandum of understanding, announcing their intention to use the UK as their manufacturing base in Europe, and plans to build the UK’s first-ever wind turbine assembly plant.
According to the official announcement, Mingyang Intelligence will invest in the construction of a blade manufacturing plant, a service center and possibly a wind turbine assembly plant in the UK.
If the project goes well, the investment will create the UK’s first wind turbine assembly plant, which will also mean greater local manufacturing capacity for UK offshore wind power and create more green jobs in the UK.
Mingyang Smart said that the reason why it chose to build a factory in the UK is because of the great potential of wind power in the UK.
Statistics show that the UK is one of the largest markets for offshore wind power in the world, and it is planned that the installed capacity of offshore wind power generation will reach 40GW by 2030. The UK is expected to be the second largest offshore wind market in the world after China by 2035.
What other Chinese companies have successfully listed in the UK?
In fact, in addition to Mingyang Intelligence, many Chinese companies have successfully landed on the London Stock Exchange through Shanghai-London Stock Connect or direct listing. They are:
1. Huatai Securities
On June 11, 2019, Huatai Securities announced that it would issue no more than 75.0137 million Global Depository Receipts (GDRs) on the London Stock Exchange, with each GDR representing 10 A shares of the company.
The GDRs issued this time have been officially listed on the London Stock Exchange and traded on the main market of the London Stock Exchange.
As a Chinese listed company, Huatai Securities has also become the first A-share company listed on the London Stock Exchange through the Shanghai-London Stock Connect after obtaining the issuance approval from the British FCA.
2. China Pacific Insurance
On September 23, 2019, China Pacific Insurance (“CPIC”) issued an announcement announcing that it would issue Global Depository Receipts (GDR) and list them on the London Stock Exchange. A Chinese company listed on the main board of the London Stock Exchange.
According to the announcement, the new A-shares of the underlying securities represented by the GDR issued by China Pacific Insurance will not exceed 628.67 million shares, which will not exceed 10% of the company’s A-shares before the issuance.
After successfully landing on the London Stock Exchange, China Pacific Insurance has also become the first insurance company in China to be listed on A+H+G (Shanghai, Hong Kong, London).
3. SDIC Power
On the evening of October 29, 2019, SDIC Power issued an announcement saying that the company has received the approval document issued by the China Securities Regulatory Commission and approved the issuance of no more than about 67.8602 million Global Depository Receipts (GDR), corresponding to the newly added A-share underlying stocks. Not more than about 679 million shares.
After the completion of this GDR issuance, it means that SDIC Power can be listed on the London Stock Exchange (hereinafter referred to as the London Stock Exchange), becoming the third Chinese company to be listed on the main board of the London Stock Exchange through the “Shanghai-London Stock Connect”.
SDIC Power is a comprehensive power listed company that focuses on hydropower, combines water and fire, and supplements scenery. Its controlling shareholder is State Development and Investment Group Co., Ltd.
In March 2022, RC365, a financial technology company from Hong Kong, China, has successfully listed on the main board of the London Stock Exchange under the ticker symbol RCGH.
According to RC365, a total of 32,534,591 new shares were issued in this listing, and the issue price per ordinary share was 6.2 pence (issue price), and a total of 2 million pounds was raised in this listing. At the issue price, RC365 has a market value of approximately £6.7 million.
RC365 was established in Hong Kong, China in 2013, focusing on fintech, including online and offline payment platform solutions.
It is worth mentioning that RC365 is also the first Chinese company to be approved by FCA and listed on the main board of the London Stock Exchange in the form of direct listing during the new crown epidemic.