Value Partners Group, a Hong Kong fund management house that managed US$6.4 billion at the end of July, plans to raise as much as HK$2.91 billion for two existing shareholders in an initial public offering this month.
Value Partners is offering 381.6 million existing shares in a price range of HK$6.78 to HK$7.63 per share, according to a sales document sent to fund managers.
Vendors of the shares are US private equity fund JH Whitney III, and Value Holdings, a subsidiary of US private equity group Holding Capital Management.
JH Whitney III invested in the fund house in 1998, and Holding Capital Management in 1995.
Cheah Cheng Hye, Value Partners' chairman, said he saw no issue with the two private equities selling their investment as they had been holding the shares for many years.
All private equities should sell their investments when the timing was right, he said.
After the listing, Mr Cheah will retain 35.7 per cent of the firm, while another founder, Yeh V-Nee, honorary non-executive chairman, will keep 18.3 per cent. JH Whitney will still own 19.8 per cent. Strategic investor Ping An Insurance (Group) also will keep 9 per cent.
