By LIU Chenguang
Tiantu Capital has become the first NEEQ-listed venture capital firm listed on the Hong Kong Stock Exchange. NEEQ is a Chinese over-the-counter trading system for public limited companies.
First-day performance was a huge disappointment with its stock price falling nearly 25 percent to close at HK$4.88 per share (4.55 yuan, US$0.62).
Tiantu Capital's journey to a Hong Kong listing has not been smooth. This was its second attempt.
Tiantu was China's first investment firm to specialize in the consumer sector. From 2020 to 2022, it ranked third in terms of the number of investment projects in the Chinese consumer industry among all private equity investors, only trailing Tencent Investment and Sequoia China.
The company has invested in well-known consumer brands such as Naixue, Xiaohongshu, and HeyTea.
Since 2020, Tiantu Capital's total revenue and net investment income have steadily declined, and its net profit has decreased from 1 billion yuan (US$145 million) in 2020 to 530 million yuan in 2022.
Two-thirds of the funds raised through the Hong Kong IPO will be used to expand private equity fund management, while 25 percent will be allocated for investment business.
