Electroluminescent materials maker Oled targets $168m in STAR Market IPO

China’s Jilin Oled Material Tech a maker of electroluminescent materials, has raised 1.14 billion yuan ($168 million) from a subscription exercise ahead of its initial public offering (IPO) on Shanghai’s style STAR Market.

The company, which kicked off its online roadshow on August 21, offered 18.28 million common shares at 62.57 yuan ($9.17) apiece including 2,559,800 shares for strategic placement, 6,234,500 shares for online subscription, and 9,489,912 shares for offline exercise, according to a company filing on August 28.

Chinese Shenwan Hongyuan Financing Services is the principal underwriter for the deal. Oled will float its shares under the symbol “688378”. 

Oled will primarily invest the IPO proceeds to enhance electroluminescent material innovations, it said.

With dual headquarters in Northeast China’s Changchun city and Shanghai, Oled specialises in manufacturing organic electroluminescent materials. Founded in 2005, the company has developed over 100 types of products under four categories — cavity injection layer, cavity transport layer, light-emitting layer, and electron transport layer. Its products are exported to overseas markets including Japan and Europe.

According to its prospectus, Oled’s annual operating funds stood at 301 million yuan ($44 million) in 2019, 262 million yuan ($38 million) in 2018, and 41.44 million yuan ($6 million) in 2017. As of December 2019, it had 825 million yuan ($121 million) in assets under management.

Jingquan Xuan, the founder and president, is Oled’s biggest shareholder followed by his daughter Lingyi Xuan.

Shenzen-based Cowin Capital will bring down its stake from 17.66 per cent to 13.24 after Oled lists, while retaining its position as the third-largest shareholder. Cowin Capital had made an undisclosed investment in Oled’s angel funding round in 2010. 

Oled’s investors also include state-owned Yadong Investment Management, Peking University-backed Yanyuan Venture Capital, Changchun Emerging Investment, Wiso Mont Asset Management, Green River Investment, among others.