MSPEA-Backed Tianhe Chemicals Plans HK IPO

Jinzhou, Liaoning province-based Chinese special chemicals firm Tianhe Chemicals Group Ltd. is planning to raise between US$600 million to US$800 million in an Hong Kong IPO, according to media reports.

In March 2012, Morgan Stanley Private Equity Asia (MSPEA) invested US$300 million in Tianhe for an undisclosed significant minority stake. As part of the deal, MSPEA’s chief investment officer Homer Sun joined Tianhe’s board.

Tianhe is to offer both newly issued shares and existing shares in the planned IPO in Hong Kong, with 72.5% being new shares, according to the media reports.

It is unclear if and how much MSPEA, which has invested a combined US$2.5 billion in Asia, will sell its shares in the IPO.

Founded in 1992, Tianhe is China’s largest producer of lubricant oil additives and a producer of specialty fluorochemicals.

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