CDH, 3i-Backed Beijing Digital Telecom Plans $153M HK IPO

Beijing Digital Telecom Co. Ltd., backed by CDH Investments and 3i Group, is planning to raise up to HK$1.18 billion (US$153 million) in a Hong Kong IPO, according to a regulatory filing.

China’s largest mobile telecommunications chain store and the third largest mobile phone retailer is offering 166.67 million shares at HK$5.3 to HK$7.1 per share.

Chinese telecom firm China Unicom’s investment arm, Lenovo Group, TCL Communication Technology and Qihoo 360 Technology have signed on to be cornerstone investors for the IPO, committing a total of close to US$50 million.

In June 2007, in preparation for an A-share offering, CDH Investments and 3i Group invested RMB200 million (US$32 million) to take a combined stake of 32.46% of the company.

Beijing Digital Telecom says it will use the proceeds from the float on expanding its retail network, repay loans and strengthen its information systems.

Founded in 1993, Beijing Digital Telecom has over 1,500 stores in 20 provinces and cities in China. In 2013, the company recorded RMB12 billion in revenue and RMB1.74 billion in gross profit, up from RMB8.8 billion and RMB1.46 billion respectively in 2012.

London-based 3i Group manages over US$19.7 billion of assets focusing on private equity, infrastructure and debt management.