CITIC Capital plans $200 million U.S. IPO for 'blank cheque' company
|01/23/2020 | 02:50am|
Chinese private equity firm CITIC Capital plans to raise $200 million by listing a "blank cheque" special purpose acquisition company (SPAC), according to a filing with the U.S. Securities and Exchange Commission.
The flagship alternative investment arm of conglomerate CITIC Group [CITIC.UL] will be the first state-owned company from China to list an SPAC - a vehicle that raises funds for the sole purpose of using the money for acquisitions.
The SPAC, named CITIC Capital Acquisition Corp, said in the filing it intends to search globally for companies in the energy efficiency, clean technology and sustainability sectors. It will focus on companies with potential for success in China, other markets in Asia and elsewhere.
It has, however, not selected any targets or started any talks, the filing said.
While a series of SPACs have been listed in New York in recent years, it is still rare for their sponsor or their focus to be Chinese.
China Minsheng Financial listed an SPAC in 2017 and bought Kaixin Auto, an online car dealer, the year after.
CITIC Capital, which had assets under management of approximately $29.2 billion as of August 31, plans to issue 20 million units at $10 per unit. Credit Suisse is the sole bookrunner.
Founded in 2002, CITIC Capital has over 200 portfolio companies and is known for its investments in Chinese delivery business SF Express and the Chinese unit of McDonald’s. The firm's fourth China buyout fund raised $2.8 billion in August.
By Kane Wu