Transaction Overview
China Everbright Water Limited (Stock code: 1857.HK) successfully listed on the Hong Kong Stock Exchange on May 8, 2019. CMBI acts as Joint Bookrunner and Joint Lead Manager for this IPO.
China Everbright Water Limited is a leading integrated water environmental solutions provider in the PRC, providing a comprehensive range of environmental water services. Company’s business spans wastewater treatment, water environment treatment, integrated utilization of water resources and water ecological protection. According to Frost & Sullivan, company is the largest Central State-Owned Enterprise operating in the wastewater treatment industry in the PRC, as well as the third largest wastewater treatment service provider in the Bohai Economic Rim in terms of treatment capacity in 2017. Company is also one of the top 10 integrated water resources solutions providers in the PRC in terms of 2017 market share, and one of only three companies in the PRC that was ranked in the top 10 in both the municipal wastewater treatment market and the water environment management market in 2017.The company issued 103,970,000 H shares (100% new shares), accounting for 3.7% of the total issued share capital before the exercise of the over-allotment option. The issue price is set at HK$2.99, and the total amount raised is approximately US$40 million (assuming over-allotment option not exercised).
Everbright Water is the first company dual-listed in Singapore and Hong Kong in the Everbright Group. It is also the first company dual-listed in Singapore and Hong Kong since 2019. In the case of extremely volatile market, this IPO is still welcomed by domestic and foreign investors. This achievement was strongly supported by various departments and local branch offices of the parent company CMB. The close cooperation among Corporate Finance, Equity Capital Markets, Asset Management Department, Equity Department, Wealth Management Department, Legal & Compliance Department, Operation Department and other departments helps a lot, which lays an important foundation for the project. The important contribution of CMBI to the project during its issuance and offering has been highly recognized by the management of the company.
Source: Company Announcement
About China Everbright Water Limited
China Everbright Water Limited is a leading integrated water environmental solutions provider in the PRC, providing a comprehensive range of environmental water services. Its business spans wastewater treatment, water environment treatment, integrated utilization of water resources and water ecological protection. It is listed on the SGX-ST since Dec 22nd 2014.
Company offers comprehensive and integrated water environment management solutions to customers, including municipal and industrial wastewater treatment, sludge treatment and disposal, water environment treatment, sponge city construction, reusable water, wastewater heat source pump, leachate treatment, research and development of water environment technologies and engineering construction. Company generally achieves growth through three major ways: (i) obtaining new projects from local governments; (ii) project upgrade and expansion and (iii) acquisitions. For most of service concession arrangements, company adopted either BOT or TOT project models according to the relevant service concession arrangements. As of December 31, 2018, of 85 projects in operation, 64 were BOT projects and 18 were TOT projects. Company’s geographical footprint spans across East, Central, South, North and Northeast China, including Beijing, Jiangsu, Shandong, Shaanxi, Henan, Hubei, Guangxi Zhuang Autonomous Region, Liaoning and Inner Mongolia Autonomous Region, etc., which shows high-speed development.
Source: Prospectus, Company’s HKEX Deal Announcements, Dealogic
