TIDMGIPO
RNS Number : 1424D
Grand Group Investment PLC
27 January 2015
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS
RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN
WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE
UNITED STATES OF AMERICA, SINGAPORE, HONG KONG, PEOPLES REPUBLIC OF
CHINA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA, AUSTRALIA OR
ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR
DISTRIBUTION OR ANY COPY OF IT MAY CONTRAVENE LOCAL SECURITIES LAWS
OR REGULATIONS.
This announcement does not constitute an offer to sell or a
solicitation of an offer to buy securities in any jurisdiction in
which such offer or solicitation is unlawful. Investors should not
subscribe for or purchase any transferable securities referred to
in this announcement except on the basis of the information in the
admission document ("Admission Document") intended to be published
by Grand Group Investment PLC ("Company" or the "Group") in due
course in connection with the proposed admission of its ordinary
shares ("Ordinary Shares") to trading on the AIM Market of the
London Stock Exchange plc ("Admission"). Copies of the Admission
Document will, following publication, be available at the
registered office of the Company, subject to applicable securities
laws or regulations.
Press Release 27 January 2015
Grand Group Investment PLC
("Grand Group", the "Company" or the "Group")
First Day of Dealings on AIM
Grand Group Investment PLC, a provider of expansion capital and
value added services to China-based SMEs with high growth
potential, is pleased to announce the commencement at 08.00 a.m.
today of dealings of its Ordinary Shares on AIM, a market operated
by the London Stock Exchange plc. ZAI Corporate Finance acted as
Nominated Adviser and Sole Broker to the Company. The stock market
EPIC will be GIPO.L.
The Company, together with ZAI Corporate Finance, successfully
raised GBP7.1 million (before expenses) in a fundraise by placing
8,952,631 million ordinary shares with institutional and other
investors at a placing price of 80 pence per ordinary share (the
"Placing"). Grand Group's market capitalisation on admission, based
on the placing price, is approximately GBP27.1 million. The net
proceeds of the Placing will be used by the Company in part to
provide access to capital to finance its growth strategy, enable
the Company to invest in the next company, Xinya and, to help
accelerate the execution of the Group's strategy.
James Newman, Non-Executive Chairman of Grand Group Investment
PLC, said: "We are delighted with the response from investors and
the success of our AIM listing. This was a milestone event for us
at Grand Group and the Board joins me in welcoming all of our new
shareholders. We look forward to delivering on our promise to them
as we move to the next stage of our development as a quoted
company."
The Company's admission document can be found under the
Investors section at http://www.grandgroupplc.com.
- Ends -
For further information:
Grand Group Investment PLC
James Newman, Non-Executive Chairman Tel: +44 (0) 20 7398
7710
www.grandgroupplc.com
ZAI Corporate Finance Limited
Ray Zimmerman / Ivy Wang Tel: +44 (0) 20 7060
2220
www.zaicf.com
Media enquiries:
Abchurch Communications Limited
Henry Harrison-Topham / Quincy Allan Tel: +44 (0) 20 7398
7710
grand@abchurch-group.com www.abchurch-group.com
Notes to editors
About Grand Group
The Grand Group was founded in 2014 by Yang Xiao and other
founding shareholders. The Company has been established for the
purpose of identifying, acquiring and investing in small to
medium-sized companies with high growth potential, principally
operating in the People's Republic of China ("PRC").
Grand is a late stage incubator which focusses on investing in
established businesses with either technology or intellectual
property which the Board believes will benefit from Grand's
university research resources.
Partnerships
The TKK Society has fostered and maintained a broad network of
contacts with individuals at local and international higher
education institutions, including: Jiangnan University; Xiamen
University; Jimei University; NanYang Technological University
(China); University of California Berkeley (Tan Kah Kee Hall);
National University of Singapore; University of Hong Kong; Oxford
Brookes University; Keuka College (New York State); and the
University of Greenwich.
Amongst these universities, Grand has already established
effective relationships with Jiangnan University and Jimei
University for its current projects and the Directors believe that
similar relationships can be developed with other universities.
The PE Market in China
The rapid growth of China SMEs has brought great opportunities
since the 1980s for the Chinese PE industry. The Chinese PE market
has been historically characterised by short term, low risk and
high return investments, as a result of which, Chinese PE firms
have had no incentive to develop value-added services, or to worry
about medium to long term development.
According to 2013 China VC/PE Firms' Value-added Services
Report, private equity needs to build management systems based on
value-added services. By the end of 2012, there were more than
6,000 private equity (PE) investment firms in China. After 15-20
years of growth, in 2012-2013 China's PE market began to witness
its first general decline, which can be seen by the decline of
major PE metrics: fundraising, investment and exits. A large number
of Chinese PE firms have invested in many businesses since the
start of the PE market in China, but have yet to manage successful
exits from these projects. According to the official statistics
from Zero2IPO Research, between 2006 and 2012, VC/PE firms made
13,728 investments, with only 2,336 exits.
The 2013 China VC/PE Firms' Value-added Services Report states
that VC/PE companies have begun to play the role of an "active
investor", but few of the existing players, the Directors believe,
are properly equipped to do so. Traditional Chinese PE firms
normally only provide value-added services during the
post-investment period, helping investee companies solve financial
problems and achieve capital appreciation. In this respect, the
Directors believe Grand Group is well-placed to meet the
competition, as it provides value-added services in the
pre-investment period as well as the post-investment period.
The Chinese SME market
The development of SMEs has increasingly contributed to China's
economic growth. The output value of SMEs accounts for at least 60%
of the country's gross domestic product, generating more than 82%
of employment opportunities in China.
By industry distribution, the manufacturing industry accounts
for 52.8% of SMEs, followed by the wholesale and retail industries
(35.2%); construction (4.6%); and transportation and storage
(2.6%).
The growth rate in the Chinese SME sector has logically been
slowing down in recent years, after 30 years of rapid growth.
Problems encountered by Chinese SMEs include weak linkage with
external markets, weak technological innovation, and inadequate
financial support.
SMEs have however become a major force in pushing forward
China's science and technology innovation. SMEs account for 65% of
the country's patented invention, 75% of corporate innovations and
80% of new product developments. The Directors believe that it is
essential for SMEs to improve technological innovation and
strengthen linkage with external resources to become better able to
withstand risks and adapt to the changing economy in China. Grand
Group's focus on the SME sector means it will have a large and
fertile market in which to invest.
Investments - Victory
Victory produces vocational training software, and most
importantly training videos for basic blue collar jobs, primarily
in the metal working (known in China as the "metallurgy") sector.
Victory works in a field which represents one of the fundamental
social problems in the PRC today: that of unskilled labour
migration from the countryside to urban areas.
Upon completion of the pre-IPO reorganisation, Grand acquired
33% of Victory from Shenzhen Grand, which had previously made an
investment of RMB 196 million in cash into Victory. As at 30 June
2014, the fair value of the Company's investment in Victory
remained RMB 196 million. The Directors understand Victory is
targeting a flotation within the next two years.
Investment Pipeline
Fujian Xinya Group Co., Ltd. ("Xinya")
Xinya is a leading supply chain, "Internet of Things" or "IOT"
enterprise which provides internet supply chain information and
services for e-commerce platforms for foreign and domestic brands.
Xinya has its own self-developed order management system ("OMS")
and warehouse management system ("WMS") which provides customers
with information and services for supply chain management, such as
order processing product design, warehousing, customs clearance and
distribution. Xinya is currently the warehousing partner of Taobao,
Jingdong, Vancl and other relevant e-commerce platforms in
Fujian.
Directors
Mr Yang Xiao,Executive Director (aged 50)
Mr Yang initiated Grand's focus on the SME technology innovation
PE fund, backed by his strong relationships with the TKK Society
and investor network. Mr Yang has worked in media and the brand
marketing industry for over 25 years during which period he
successfully completed a series of marketing strategies for Chinese
SMEs, many of which are listed on international stock markets.
Mr Yang has extensive experience of investing in media and
culture sectors. In 2013 Mr Yang co-founded one of the largest
pools of high net worth individuals and entrepreneurs in the area.
Mr Yang introduced Grand's first investment project, Victory. Mr
Yang has committed a significant amount of his resources towards
making Grand one of the leading private investment funds in
China.
Mr Zhou Jiang, Executive Director (aged 43)
Mr Zhou is currently Chief Secretary of the TKK Society (China),
Director of the TKK innovation fund of Jiangnan University,
Director of the Institute of Light Industry of Jiangnan University
(joint funded by the Xinya Group), and a director of Victory
Cayman. Mr Zhou previously headed up Lion Global Investors Limited
(China). Before Mr Zhou joined the TKK Society he worked in the
marketing and advertising industry in China for over 20 years. He
was in charge of a series of business cooperation projects with
international brands including Pierre Cardin, Apple, and Coca-Cola,
along with Wuxi government associated business brands including
TianJiao.
Mr Li Chuang, Executive Director (aged 28)
Mr Li is the Executive Director of New Horizon Strategy
Investment and a member of the TKK International Institute.
Previously, he was investment project manager at Lion Global
Investors Limited. New Horizon Strategy Investment and Lion Global
Investors Limited are subsidiary investment fund management firms
of OCBC Bank and represent the majority of OCBC's investments in
the Greater China Region. Mr Li has experience in private
investment and fundraising for large scale projects in cultural
education, new material energy, TMT, IT engineering, technology
industrialisation and technology incubation in China. Mr Li has
completed a number of large scale private investment projects as
chief investment project manager including: Ruiyun Cloud Computing
R&D and Construction Co. Ltd, ENN Group,
Fortune Media (Group) Culture Development Co. Ltd., and an O2O
Company.
Ms Gu Yingying, Executive Director (aged 32)
With experience in investment and investment banking,
particularly on TMT, culture, education and agriculture, Ms Gu has
been involved in a series of investment projects with the Tan
family in the education sector in China. Significant investment
projects include the first Sino-foreign cooperative education
project, the Jimei University Chenyi College, and establishing one
of China's first online education websites (www.chinaedu.net).
Non-executive Directors
James Newman, Non-Executive Chairman (aged 58)
Mr Newman's 30 year career in finance has been focussed on Asia
generally and China in particular. He started out in commercial
lending, and later worked in investment banking and investment
management with Citigroup and, most recently, as head of Global
Equities at Alliance Trust. During his career Mr Newman has
analysed, invested in, provided loans to or advised numerous
Chinese companies from a wide variety of sectors. Now based in the
UK, he lived in Mainland China, Taiwan and Hong Kong for 16 years,
and speaks Mandarin Chinese.
Mark Hemmann, Non-Executive Director (aged 44)
Mr Hemmann is a private equity, banking and finance executive
with a broad background in capital markets, Chinese companies,
aviation, leasing, and operations garnered over the past 16 years.
In addition to his current position as an independent director with
Grand Group, he currently is leveraging his broad experience in
China and along with Shanghai's Southwind Equity Management
Company, has founded one of China's first distressed asset funds,
China Special Situations Fund I.
Stephen Roberts, Non-Executive Director (aged 62)
After graduating with a Master's Degree in Economics from the
University of Wales, Mr Roberts spent his early career in venture
capital before leaving County Natwest in 1987 to focus on the
public markets with Midland Bank which was later acquired by HSBC.
After 10 years of acting as adviser and broker to numerous public
companies, he left to join Charterhouse Securities as a director in
1996. In 2000 he joined Collins Stewart, before becoming Head of
Corporate Finance at Evolution Securities in 2004. He was later to
become Head of Corporate Finance at Fairfax and Daniel Stewart.
Throughout his career in stockbroking, Mr Roberts specialised in
the provision of corporate finance advice to smaller companies in
the public markets acting in numerous initial public offerings,
reverse takeovers and equity fundraisings.
For further information, please visit www.grandgroupplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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