On the ranking list of securities dealers by IPO proceeds raised for the first four months of 2017 published by Bloomberg, First Capital Securities Limited (“FC Securities”), a wholly-owned subsidiary of China First Capital Group Limited (“CFCG” or the “Group”; stock code: 1269) placed fourth with three IPO underwriting projects completed and a 5.43% market share.
In the first four months of the year, FC Securities was the joint bookrunner and underwriter of IPO projects of China Yuhua Education Corporation Limited (“Yuhua Education”; stock code: 6169), Luzhou Xinglu Water (Group) Co., Ltd. (“Xinglu Water”; stock code: 2281) and China New Higher Education Group Limited (“New Higher Education Group”; stock code: 2001). The net proceeds from the above mentioned IPOs were approximately HK$1,456 million, HK$390 million and HK$743 million respectively.
Mr. He Yaobin, Deputy CEO of CFCG, said it was encouraging to see FC Securities making it among well-established major financial institutions on top of the list of underwriters in the Hong Kong IPO market in just over a year after it began operation in February 2016.
As the education industry continues to gain attention in the capital market and China’s private education industry flourishes, demand for related funds is likely to keep increasing. So far in 2017, there had been four education type IPOs and FC Securities assisted with three of them and more of such listings are expected to take place in Hong Kong. Having leverage from the complete industrial chain of CFCG and First Capital Fund in the education industry, FC Securities boasts abundant resources and advantages, which it will use to develop the niche business of education securities service and to explore in depth the financial service needs of education enterprises. These endeavours will help optimise CFCG’s "Education+Finance" powered integrated operational platform, and by heeding customers’ needs and reaping maximum synergistic benefits from integrating resources with CFCG’s subsidiaries in the financial segment, namely First Capital Asset Management Limited (which holds SFC licences for Type 1, 4 and 9 regulated activities) and First Capital International Finance Limited (which holds the SFC licence for Type 6 regulated activities), FC Securities will be able to help boost notably the brand presence of “CFCG” in the domestic market and internationally.
