“Tycoon-designated Placing Agent” RaffAello brings stellar lineup of investors to China Wantian (HKSE:1854)

 

In recent months, financial markets have rebounded, and many corporate financial activities are once again gaining momentum. In April 2023, China Wantian Holdings Limited (“China Wantian”) (HKSE:1854) announced a rights issue plan issuing up to 309,504,000 rights shares to raise not less than approximately HK$111.4 million.

 

Hooy Kok Wai, the chairman of China Wantian, also serves as the vice chairman of Perfect (China) co., Ltd,. Headquartered in Zhongshan City, Guangdong Province, in the heart of the Guangdong-Hong Kong-Macao Bay Area, Perfect (China) Ltd. sells healthy food, small kitchenware, cosmetics, cleaning products and personal care products. In recent years, as a foreign-funded company engaged in the big health technology industry, Perfect has relied on its digital transformation strategy to actively build a smart ecological platform integrating R&D, procurement, manufacturing, logistics, sales and services. According to Reuters IFR, Perfect (China) was considering an IPO in Hong Kong in 2018, with a target of raising US$1.5 billion (approximately HK$11.7 billion). With the close relationship of the two companies, there may be a chance that Perfect (China) will try to enter HK capital market through China Wantian.

 

RaffAello Securities (HK) Limited being the underwriter is another highlight of the rights issue. It is well-known for its success in bringing listed companies to new heights. Its strong connections to institutional and professional investors is evidenced by its work as the placing agent for Franklin Templeton Alternative Investment Asia Pacific Structured Equity Fund, which focuses on PIPE transactions involving listed, relatively small to medium-sized companies.

 

Previously, RaffAello Securities has also been the placing agent for Palinda Group Holdings Limited (“Palinda Group”)(HKSE: 8179). It is another example of a successful partnership, with the stock price of Palinda Group skyrocketing from HK0.1 to HK$0.18 as of August 25, 2022. After the rights issue, RaffAello Securities also helped attract China Asset Management Co. Ltd,. (“ChinaAMC”), one of the largest asset manager in China with AUM over RMB 1 trillion, to invest in Palinda Group. ChinaAMC Absolute Return Fund SP now owns 4.55% of Palinda Group.

 

Given RaffAello Securities’ involvement in the rights issue for China Wantian, aggressive investors can expect a significant upside of Chiba Wantian’s share price.