Tiantu Capital Plans to List in Hong Kong

On May 19, the China Securities Regulatory Commission disclosed the approval procedure of an overseas initial public offering (including common shares, preferred shares and other stocks and stock derivatives) for Tiantu Capital Management Co., Ltd. (Tiantu Capital), which is currently in the stage of “receiving materials.”

If the application is accepted, Tiantu Capital will also submit its prospectus to the HKEx immediately. Tiantu Capital will become the first local VC listed on the National Equities Exchange and Quotation (NEEQ) and Hong Kong Stocks Exchange in China. The company’s shares listed on NEEQ stock were already suspended on May 20. Before the suspension of trading, the company had a total equity of 520 million shares, or about 5 yuan ($0.75) per share, and a market value of 2.599 billion yuan ($389.85 million).

Founded in 2002, Tiantu Capital was one of the earliest professional institutions engaged in equity investment in China, and was listed on the NEEQ in 2015. By the end of 2021, the firm had as many as 369 shareholders. Wang Yonghua, partner of Tiantu Capital, Chairman of the Investment Committee and Chairman, was the largest shareholder, and Feng Weidong, Chief Investment Officer, held 1.35% of the shares.

In addition, the top ten shareholders of the firm include Guochuang Yuanhe Venture Capital Fund (L.P.), owned by Oriza FoFs, Shenzhen Paladins Capital Management Co., Ltd., invested by Country Garden and Shenzhen Tiantu Xinghe Investment Enterprise (Limited Partnership) and Shenzhen Tiantu Xingzhi Investment Enterprise (Limited Partnership), the employee stock ownership platforms kept by Tiantu Capital.

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As an investment institution focusing on the large consumption among local venture capital institutions, Tiantu Capital projects have ranged from innovative consumption, new retailing, consumer technology and other consumption upgrading directions. Well-known domestic enterprises such as China Feihe Limited, Nayuki Holdings Limited and Chongqing Jiangxiaobai Liquor Co., Ltd. have all been financed by Tiantu Capital in the past.

The financial report shows that the institution  had a revenue of 2.026 billion yuan ($304.10 million) in Q1 of 2022, a decrease of 18.63% from its 2.489 billion yuan ($373.60 million) in the same period of last year. The company’s net profit was 735 million yuan ($110.32 million), an increase of 4% from 706 million yuan ($105.97 million) in the same period of last year. The net profit after deducting non-recurring profit and losses was 653 million yuan ($97.95 million), a decrease of 9.18% from the 720 million yuan ($108.07 million) in the year before.

Tiantu Capital said that the main reason was that the operating income of the company’s non-asset management business had decreased due to the epidemic in 2021.