On December 28th, the mainland China integrated power service provider, Sichuan Energy Investment Development Co., Ltd. ("Sichuan Energy Investment "; stock code: 1713.HK) successfully listed on the mainboard of the Hong Kong Stock Exchange while First Capital Securities Limited (“First Capital Securities”) was appointed as the Joint Bookrunner and Joint Lead Manager.
Diversified industry chain mix to broaden value-added services for new business
Sichuan Energy Investment has recruited four cornerstone investors: SCIG International Limited, Beijing Forever Technology Co., Ltd., Ninggelang Electric Co., Ltd. and Sichuan Huadong Electric Group Co., Ltd..
As outlined in its prospectus, Sichuan Energy Investment is a vertically integrated power supplier and service provider in Yibin City, Sichuan Province. The company owns and manages a full power supply value chain that comprises power generation, electricity distribution, and sales. Currently, the company primarily focuses on power supply and power generation, as well as electricity distribution and sales, electrical engineering construction services, plus a host of new energy and electricity value-added services, among other related businesses. As of June 30th, 2018, Sichuan Energy Investment possessed and operated hydropower plants with an installed capacity of 138,680 kW, while the regional power supply network they built and owned covered seven counties and districts as well as certain locations in the peripheral areas. By utilising an integrated model of production coupled with supply and sales, Sichuan Energy Investment has been able to efficiently and adequately allocate in real time electricity resources within its predesignated power supply service area. Moreover, in compliance with the relevant laws of Yibin City’s administrative division, Sichuan Energy Investment is the only regional supplier in the designated power supply service area. As of December 31st, 2017, Sichuan Energy Investment’s power supply service area covered approximately 9,254 sq. km., accounting for 68.6% of the total area of Yibin City.
In order to adapt to a constantly fluctuating power market environment and to help to boost its overall level of competitiveness, Sichuan Energy Investment plans to create a diverse industry chain mix, which includes initiatives to consolidate the traditional energy supply market and expand into new energy and the value-added electricity services markets. One of the controlling shareholders of Sichuan Energy Investment, “Energy Investment Group” is an investment company controlled by the Sichuan Provincial Government. As the major energy investment platform under the People’s Government of Sichuan Province, Energy Investment Group has enjoyed an on-going stable development in its various new energy business operations, including wind and solar power as well as biomass energy generation and others. It is widely expected that the Energy Investment Group will provide a substantial amount of technical support and promising business opportunities to facilitate Sichuan Energy Investment’s overall growth and transformation.
Sichuan Energy Investment noted that its successful listing in Hong Kong has formed another major milestone in the company’s history of development. Sichuan Energy Investment will further expand its share in the power supply market of southwestern China and work to further develop its value chain of power services. Against a backdrop of steady economic growth in Sichuan, this recent listing has proven to be a decisively favourable factor for the continual overarching growth of the company.
First Capital Securities, along with providing financial services to Sichuan Energy Investment, has been involved in IPOs for 12 companies.
First Capital Securities acted as the Joint Bookrunner and Joint Lead Manager for the listing of Sichuan Energy Investment in Hong Kong, providing the company with financial services. Towards the end of 2018, the total number of IPOs (initial public offerings) First Capital Securities has been involved with has totaled 12, including seven IPO applicants that offer education shares, including: China Xinhua Education Group Limited, Top Education Group Ltd, BExcellent Group Holdings Limited, China 21st Century Education Group Limited, Bojun Education Company Limited, Hope Education Group Co., Ltd., and China Chunlai Education Group Co., Ltd. ; and five IPO applicants that offer non-educational shares, including: Sichuan Energy Investment Development Co., Ltd., Zhejiang Cangnan Instrument Group Company Limited, DaFa Properties Group Limited, Kinergy Corporation Ltd., and Shanshan Brand Management Co., Ltd..
Encouraged and motivated by the current economic development trend, along with the pressing need for most Chinese enterprises to venture abroad, the decision to go public and listed in major overseas stock markets, including Hong Kong, has become the most logical and prudent choice. The result has not only brought about new developmental opportunities for those enterprises themselves, but also helps bolster numerous investment banks and financial institutions for the services they offer. Following the unprecedented connectivity attributable from the formal launch of the Stock Connect Schemes, a unique collaboration between mainland China and Hong Kong capital markets, First Capital Securities has been functioning as a key investment banking institution in the Hong Kong capital market with an established domestic and overseas investment and financing service platform due to its steadfastly accumulated experience in financial services as well as its comparative edge in providing listed companies in Hong Kong with professional and overwhelmingly efficient investment banking services. First Capital Securities has been fittingly approved by many educational enterprises as well as traditional firms with which it has previously engaged.
First Capital Securities anticipates they will invariably provide pragmatic and effective investment and financing solutions and continue to broaden their investors’ sales networks by tapping into the needs of those Chinese enterprises which seek to list in Hong Kong, while at the same time providing quality services to enhance the latter’s corporate finance portfolios for overseas listings.