Shanghai-based death care services provider Fu Shou Yuan International Group Ltd plans to offer 500 million new shares at HK$2.88-3.33 apiece to raise US$215 million through an IPO on the Hong Kong Stock Exchange.
The IPO is set to price on December 12 and debut on the Hong Kong Stock Exchange on December 19.
According to the company’s prospectus, four cornerstone investors including Carlyle Group, Farallon Capital and two separate subsidiaries of Cinda International Asset Management Limited, China Cinda (HK) Asset Management and Cinda International Holdings will purchase US$45 million of shares in Fu Shou Yuan.
The company says it will use the proceeds to develop new cemeteries, build up new funeral facilities and expand the coverage of sales network.
Founded in 1994, Fu Shou Yuan is one of the first private company entrants into China’s death care services, with cemeteries and funeral facilities currently located in eight major cities including Shanghai, Hefei, Zhengzhou, Jinan, Jinzhou, Chongqing, Xiamen and Ningbo.
Fu Shou Yuan generated RMB307 million in the first half of 2013, an increase of 38.5%, with RMB118 million in net profit.
Citigroup is the sole global coordinator and sponsor of the offering, while UBS and CIMB are serving as the joint bookrunners and lead managers.