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Exits, Venture Capital

Legend-Backed Tanyuan Tech Completes $59M Shanghai IPO

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Tanyuan's main product, graphite film, is used on smartphones to help release heat.

Tanyuan Tech, a Jiangsu province-based high-tech new material maker backed by Chinese investment firm Legend Capital and GSR Ventures, has completed an initial public offering on the Shanghai Stock Exchange today.

The company issued 52 million new shares at the price of RMB7.87 (US$1.14) apiece to raise a total of RMB409 billion (US$59 million).

Founded in 2010, Tanyuan Tech develops and manufactures high thermal conductivity and heat dissipation graphite film, a new material with its main applications on smartphones to help release heat generated by the mobile device.

The company currently has 48 patents in total related to its operations. Its products are used by a number of smartphone brands including Samsung, Huawei Technologies Co. Ltd, Vivo, and OPPO Electronics Corp.

Legend Capital acquired a 10.5% stake of Tanyuan for RMB60 million (US$8 million) back in 2012, and one year later, the firm acquired another 2.7% stake for RMB27 million (US$3 million), according to a Wechat posting released by Legend today.

According to its IPO prospectus, Legend Capital is the second largest shareholder of the company, and will have its stake diluted to 10% after the listing. Another investor, GSR Ventures, will have it stake diluted from 6.67% to 5%.

Since 2013, the company has been building a new factory in Changzhou city in Jiangsu province in Southern China. The first phase, which has a manufacturing capacity of over 200 square meters of high thermal conductivity graphite film, has already been completed.

Its revenue and operating profit reached RMB465 million (US$67 million) and RMB87 million (US$12 million) respectively in 2016, according to its disclosure document.



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