Galaxy Holdings, Puji Capital announces joint venture platform to back foreign businesses in Shenzhen

Galaxy Holdings, Puji Capital announces joint venture platform to back foreign businesses in Shenzhen

Asia-based investment group Puji Capital and China-based property developer Galaxy Holdings has recently announced a joint venture agreement to create a new economic and business region in Shenzhen.

With this partnership, the two companies will be providing direct investments and act as a business incubator for foreign startups to expand in China and other high-growth markets in Asia.

This new joint venture platform is also projected to spark innovation and bridge cross-border business cooperation between China and Western countries through investment and business support.

Commenting on the deal, the CEO of Galaxy Holdings, Yao Huiqiong said, “This new platform will create new jobs and economic benefits for the city and truly define Shenzhen as the new innovation capital for China and Western business.”

“As a Special Economic Zone that is only 30 minutes’ drive from Hong Kong, Shenzhen has the most developed infrastructure and business environment in the country to help companies reach full potential,” Yao added.

Additionally, the joint venture will also target and invest in more than 10 small to medium-sized Western growth companies in each of the three core industry sectors – mobile gaming, media technology, and consumer hardware

The two companies also aim to develop separate joint ventures to enter and expand into China market, capitalise each on the rapidly growing Chinese consumer market, and establish strategic positions along the respective industry ecosystems.

“Shenzhen is already known as the epicenter of China’s booming internet, mobile, hardware, and new technology industries. With a population of 22 million, a leading growth rate among all the Tier 1 cities and the highest ratio of young professionals from 20 to 30 nationwide, Shenzhen is undoubtedly the most vibrant business city in China and positioned to be the Silicon Valley of the East,” Yao said.

Based in Shenzhen, the new innovation and business hub has already developed programmes with a preferred network of strategic partners across China for co-investments, commercial cooperation, distribution, and point of sale opportunities for Western companies the platform invests into.

“We are uniquely positioned in the market as we have participated in various cross-border investments and provided related advisory between China and the West for over 15 years,” said Alex Szeto, the Investment Director at Puji Capital.

“We have seen nearly every iteration of pitfalls and pain points for Western companies entering China,” he further explains. “So, now when we make direct investments into the US and Western companies coming to China, we can also provide a tailored and turnkey solution and strategy for success. Galaxy (Holdings) is a cornerstone brand name throughout China and we are beyond thrilled with this new venture with them.”

Founded in 1988, Galaxy Holdings is a China leading conglomerate which primarily focuses on businesses in four key areas — Real Estate, Industrial, Property Management, and Finance.

At present, the firm has a total asset scale over US$15 billion, with its real estate business expands throughout 13 cities across Pearl River Delta, Yangtze River Delta, Circum-Bohai-Sea Region, and more.

By Vivian Foo, Unicorn Media

Hathway Cable Unit GTPL Hathway files papers for IPO to raise US$45 million

Hathway Cable Unit GTPL Hathway files papers for IPO to raise US$45 million

Cable TV and broadband internet services provider Hathway Cable & Datacom Ltd has intimated a potential initial public offering (IPO) listing on Monday where the company is looking to raise Rs 300 crore (approximately US$45 million).

The IPO filing of Draft Red Herring Prospectus was completed by its material subsidiary, GTPL Hathway Pvt. Ltd with the Securities and Exchange Board of India as well as with both the Stock Exchanges, i.e. BSE Limited and National Stock Exchange of India Limited.

The GTPL Hathway IPO was approved by the Hathaway’s board since August 2016.

As per details of the draft prospectus, the company notes that its IPO will seek to raise funds for GTPL through a fresh issue of equity shares while giving an option to existing GTPL shareholders to sell their holdings.

Offering cable TV and broadband services, GTPL Hathway is one of the largest cable television operators in India, found in several cities which includes Pune, Ahmedabad, and Kolkata.

Despite being one of the many subsidiaries and partnerships owned by the listed Hathway Cable and Datacom Limited, GTPL Hathway is arguably one of its most profitable associations as well as one of the largest contributors to Hathway’s consolidated numbers across major financial and operational parameters.

On the other hand, Hathway’s own cable TV operations span across almost 140 cities, alongside their broadband service which is provided in 21 cities across the country.

At present, Hathway has approximately 1.4 million broadband customers base which the company claims to constitutes approximately 52% of the total cable broadband market in India.

Besides Hathway, who owns a 50% stake of GTPL Hathway, other major shareholders include co-founders – Aniruddhasinhji Jadeja and Kanaksinh Rana – who owns a direct 14.6% alongside another indirect 29.1% through shareholding entity Gujarat Digi Com Private Limited and 5.2 per cent shares of GTPL respectively.

Shares of Hathaway Cable & Datacom Ltd was last trading in BSE at Rs, 34.55, which shows a Rs 0.25 increase as compared to the previous close of Rs34.30. The total number of shares traded during the day was 12593 in over 88 trades.

The stock hit an interday high of Rs 34.74 and intraday low of 34.25. The net turnover during the day was Rs.434100

The demerger will be subjected to requisite approvals from the shareholders, creditors, high courts, DoT, stock exchanges, Sebi and other applicable regulatory authorities.

The company has hired JM Financial Institutional Securities Ltd, BNP Paribas, Motilal Oswal Investment Advisors Pvt. Ltd and Yes Securities (India) Ltd to manage the initial share sale.

By Vivian Foo, Unicorn Media