Hillhouse, Och-Ziff Back Huatai Securities’ $4.5B Hong Kong IPO

China-focused private equity firm Hillhouse Capital and U.S. hedge fund Och-Ziff Capital Management are among thirteen cornerstone investors in Chinese brokerage firm Huatai Securities’ HK$34.7 billion (US$4.48 billion) initial public offering, according to a securities filing.

Other cornerstone investors include Taiwan’s Fubon Life Insurance, ICBC (Asia) Investment Management, New China Life, Sequoia Gopher, Tencent Holdings Limited’s founder Pony Ma, and Ping An of China Asset Management.

The cornerstone investors are subscribing to US$1.9 billion worth of shares during the float, which is selling around 1.4 billion new shares at a price range of HK$20.68 to HK$24.80 per share.

Huatai Securities, which is China’s largest brokerage firm with a 7.9% market share, will be listed on the Hong Kong Stock Exchange on June 1.

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Nina Xiang is the co-founder and managing editor overseeing editorial content and product development at CMN. Before founding CMN in 2011, Nina worked at BusinessWeek magazine in Beijing and Institutional Investor magazine in New York, writing about business and financial services. While in New York, she also served as part-time correspondent for Shanghai's financial television channel, China Business Network, as well as China Radio International, China's national English-language radio network.