Tiantu Capital Contributing 23 Unicorns Aims at HKEX
- Chaileedo Press
- Jul 5, 2022
- 3 min read
Tiantu Capital has officially submitted the prospectus to HKEX and proposed to list on the main board.According to CHAILEEDO, Tiantu Capital is China's first investment agency with a focus on consumption, and has now faciliated 23 unicorn companies in total.
Recently, Shenzhen Tiantu Capital Management Co., Ltd. (hereinafter referred to as "Tiantu Capital ") submitted the listing application materials to the HKEX for listing on the main board of the HKEX, with JPMorgan Chase and Huatai International as co-sponsors.Tiantu Capital, which had been listed on the NEEQ in 2015, would be China's first venture capital firm to be on NEEQ and HKEX if it goes public successfully.
According to the company's website, Tiantu Capital, founded in 2002, is one of the earliest professional institutions engaged in equity investment in China. From 2019 to 2021, Tiantu Capital's investment in China's consumer sector was the third largest among all private equity investors, behind Tencent and Sequoia China, according to CIC（China Insights Consultancy）. Over the same period, Tiantu Capital ranked first among all private-equity firms centering on consumption.
Tiantu Capital's asset management grew at a compound annual growth rate of 22.9% from 2015 to 2021, according to the prospectus.Tiantu Capital assets were managed at $ 3.018 billion, $ 3.018 billion and $ 3.72 billion in 2019, 2020 and 2021, with 121, 147 and 178 invested companies in their portfolios.
In terms of financial data, Tiantu Capital recorded total income and net investment income or loss of $ 102 million, $ 212 million and $ 121 million from 2019 to 2021, respectively; Net profits were $ 26 million, $ 144 million and $ 88 million, respectively.Net profit was down by 38.4% in 2021 compared with 2020. For such decline in performance, Tiantu Capital attributes it mainly to a decline in revenue from non-asset management businesses reeling from the COVID-19 pandemic in 2021.
By 2021, Tiantu Capital has invested in 205 portfolio companies, including innovative consumption, new retail and consumer finance. It is worth noting that 23 of the 205 invested companies have exceeded USD 1000 million in their estimated value, heading towards the rank of "unicorns".
As a leading consumer goods investment company in China, Tiantu Capital has also invested in many beauty brands. According to CHAILEEDO's incomplete statistics, Tiantu Capital has invested in 16 enterprises in the related fields of the beauty sector, including the upstream and downstream industrial chain of cosmetics, including innovative biological material research and development and application enterprise PAML Biotechnologies, beauty brand Flower Knows, Scent Library, Hanajirushi, LAN, PUskinology, Biolab and so on.
Among them, the beauty brand Hanajirushi received the earliest investment from Tiantu Capital. In October 2014, Hanajirushi announced that it had secured Series A funding in the Tiantu Capital of about USD 15 million; then In 2016, it got Series B funding with an investment of more than USD 15 million, which was jointly led by Chess Zhao Capital and Qianhai Fund, with Tiantu Capital.
It's noteworthy that as early as 2015, the Tiantu Capital was listed on the NEEQ. By May, Tiantu Capital issued a statement saying that the company had submitted documents and materials for the initial public offering of foreign capital stocks listed abroad and listing H shares to the CSRC and had been accepted by the CSRC. On the same day, in order to avoid abnormal fluctuation of the stock price, Tiantu Capital suspended its stock in the NEEQ. Prior to the suspension, the company's total stock issue was 520 million shares, at 5 yuan (USD 0.75) each, with a total market value of about 2.6 billion yuan (USD 388 million).
For the listing in Hong Kong, the target amount of IPO is about USD 493 million. For the net proceeds from IPO, Tiantu Capital claims in the prospectus that about 65 percent of the funds will be used for private equity funding; Approximately 25 percent will be used for direct investment; About 10 percent for general company purposes.
According to CHAILEEDO, in recent years, enterprises initiating IPO applications across the venture capital field are of rarity, but those prioritizing new consumer areas and makeup fields are even less. If Tiantu Capital gets listed as expected this time, it will become the largest venture capital in China's beauty industry.
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