SCPE-Backed Sunfonda Group Plans $100M HK IPO

Xi’an, Shaanxi province-based luxury car dealership operator Sunfonda Group Holdings is planning an IPO in Hong Kong to raise as much as US$100 million, according to a prospectus of the company.

The company will issue 150 million new shares at HK$3.65 to HK$4.55 per share.

Sunfonda says it will use the proceeds to open more outlets and improve its sales network.

In 2011, Standard Chartered Private Equity (SCPE) invested US$34.4 million in Sunfonda for a 20% stake. Its stake will be diluted to about 15% after the IPO.

As cornerstone investor, China Taiping Insurance Group has invested US$10 million for a 3.5% stake in the company, which is subject to a 6-month lock-up period.

Founded in 2000, Sunfonda sells luxury auto brands such as Porsche and Mercedes-Benz . It manages dealership outlets in several inland provinces.

J.P. Morgan is the sole global coordinator and sponsor of the IPO.

China Expert Network