Mstar IPOed on December 24, 2010, the Biggest IPO of 2010 in Taiwan
Dec 24, 2010
The CID Group is pleased to announce the highly successful completion of the IPO of MStar Semiconductor (Bloomberg ticker 3697 TT), one of the world’s leading IC designing companies, on the Taiwan Stock Exchange on December 24th, 2010 with IPO price at NT$300 (US$9.8), approximately 10 times of CID’s average investment cost. CID is proud to have worked with MStar's exceptional management team to achieve this important milestone.
The IPO of MStar, which issued 32.2 million new shares, was more than 8 times oversubscribed, and raised total of NT$9.66 billion including additional NT$1.26 billion (US$42 million) from exercising overallotment option. Mstar marks the largest IPO since 2002 and ranks the top 5 IPO in the Taiwan Stock Exchange’s history. The offering was particularly noteworthy in that, for the first time, a local equity IPO transaction was jointly underwritten by a foreign investment bank, Goldman Sachs Group Inc.
The trading price of the company surged 15% on the first day and closed at NT$330 per share (US$10.82), with total trading value of NT$5.7billion. The closing market cap of the company reached NT$151 billion.
Spun off from System General Technology in May 2002, MStar Semiconductor is the leading graphics chip manufacturer, which delivers solutions for multimedia and wireless communication. MStar has shown exceptional financials as reflected in its first three quarters earnings results. The company posted net income of NT$4.96 billion on revenue of NT$25.47 billion with average gross margin of 42.55% and EPS of NT$11.33
As MStar’s highly active and hands-on partner, CID has assisted the company in executive recruitment, strategic planning, customer introduction, strategic partnership and IPO preparation. Specifically, the experienced CID delegate undertook the position of CFO and helped the company conduct and accomplish IPO procedures.
CID invested in total of US$32 million in MStar and which accounts approximately 7% of the holding interests.
2010 The CID Group Annual Conference
Sep 27, 2010
CID's 2010 Annual Greater China Conference was held in Shanghai, China on September 25-26. The theme of this year was “Integration and Innovation: the rising opportunities in China”. Following topics had been covered during the conference:
- CID Investment Strategy and Performance Update
- China’s Emerging Industry
- Investment Opportunities from Cross-Strait Integration
- Impact of ECFA on Cross-Strait Relation
IPO of Ambow Education Co., Ltd on NYSE
Aug 5, 2010
We are pleased to announce the successful IPO of Ambow Education Co., Ltd (AMBO), one of CID Fund I’s portfolio companies, on the New York Stock Exchange on August 5th, 2010 with IPO price at $10.00 per ADS. Ambow issued 10,677,207 ADS and raised US$107 million from the IPO. The closing market cap of Ambow on August 10, 2010 was around US$600 million. CID is proud to have worked with Ambow’s exceptional management team to achieve this important milestone.
Founded in 2000, Ambow Education provides educational and career enhancement services throughout China via multi-channel delivery network of regional service hub, which currently consists of five K-12 schools, 96 tutoring centers, 2 colleges and 16 career enhancement centers. In this investment, CID created real value and improved performance through hard work, collaboration with the Company and a strong partnership style via active participation in management. Ambow showed exceptional financials as reflected in its 2009 earnings results. The company posted net income of US$20.2 million on revenue of US$132.15 million, marking two years in a row of revenue growth by more than 50%.
Meru IPOed on Nasdaq on March 31, 2010
Mar 31, 2010
Meru Networks Inc. (MERU), one of the portfolio companies of CID Greater China Venture Capital Fund II, was successfully listed on Nasdaq on March 31, 2010. The IPO price (initially priced atUS$15 per share) jumped 29% on the first day of trading to close at US$ 19.15 per share. Meru issued 4.4 million shares and raised US$66 million from the IPO. CID is proud to have worked with Meru’s exceptional management team to achieve this important milestone.
Founded in 2002, Meru Networks provides a virtualized wireless LAN solution that cost-effectively optimizes the enterprise network to deliver the performance, reliability, predictability and operational simplicity of a wired network, with the advantages of mobility. Meru's solutions have been adopted in all major industry vertical markets, including Fortune 500 enterprises, healthcare, education, retail, manufacturing, hospitality and government. Meru is headquartered in Sunnyvale, California, and has operations in the Americas, Europe, the Middle East and Asia Pacific.
In this investment, CID created real value and improved performance through hard work, collaboration with the Company and a strong partnership style via active participation in management. Specifically, CID assisted the company in Greater China region development. Also, with CID value added platform, CID helped the company strength its relation with supply chain partners, such as MCU and WiFi chip players and facilitated company’s strategic partnership with D-link and Asus.
Meru showed strong growth despite the challenging economic environment, as reflected in its recently announced 2009 financials. Meru posted total revenue of $69.5 million in 2009, up 27 percent from $54.7 million a year earlier.