Silergy surging more than 70% in Taiwan Stock Exchange debut
Dec 12, 2013
The CID Group (“CID”) is delighted to announce the highly successful IPO of Silergry Corp. (“Silergy” or “the Company”), one of the portfolio companies of CID Greater China Venture Capital Fund II, on the Taiwan Stock Exchange on December 12th, 2013. (Stock Code: 6415)
Silergy is the first China-based IC design firm listed in Taiwan which is known as the world’s IC design powerhouse. The new shares issued were overwhelmingly chased by institutional investors, making the IPO more than 16 times oversubscribed. On the first day of trading, the Company’s stock price surged more than 70% above its listing price of NTD140 and closed at NTD220.5. The closing market cap reached NTD13.9 billion (US$ 470M).
Headquartered in Hangzhou, China, Silergy was founded by a group of technology innovators with outstanding track records at Silicon Valley. The Company offers analog power ICs widely used in industrial, consumer electronics, communication and computing. Since the inception in 2008, Silergy achieved exceptional growth both in product development and company’s financials. The Company is one of the largest analog/power IC design houses in China and has received numerous awards including 2013 RedHerring Asia Top 100 and 2013 China IC Design Company Achievement Award. The Company posted net income of NT$ 374 million on revenue of NT$ 1.4 billion as of the third quarter, and is expected to achieve three consecutive years of more than 100% revenue annual growth rate since 2010.
CID is Silergy’s founding partner and also largest institutional investor. Since the inception, CID has been working closely with the Company in shaping the business strategy and product roadmap, expanding global customer base and introducing CID’s established resources network in IC design and semiconductor value chains. Specifically for the IPO preparation, CID assisted the Company to obtain the identity of Technology Enterprise from the Taiwanese government for expedited listing process, which is the first time of such identity certified to a non-domestic company. CID is proud to work hand-in-hand with Silergy to achieve this remarkable milestone representing deepened cross-strait industry integration.
CID invested in Silergy in 2008 and currently holds approximately 22.8% of the Company. Based on the closing price on December 12th , CID has achieved approximately 14.6x multiple and 76% IRR for the investment. Silergy is the Firm’s 3rd IPO in December and the 81th exits among its 171 portfolio companies.
Aleees successfully listed on Taiwan Gretai Securities Market on December 9th.
Dec 9, 2013
The CID Group (“CID” or “the Firm”) is pleased to announce that one of its portfolio companies, Advanced Lithium Electrochemistry Co., Ltd (“Aleees” or “the Company”), a global leader in providing lithium ferrous phosphate batteries and electric buses, has successfully listed on Taiwan Gretai Securities Market (“GTSM”) on December 9th , 2013 (Stock code: 5227).
Aleees is the first E-bus company listing on Taiwan’s stock exchange. The Company received overwhelming responses from the investors to its 14.5 million new shares offering. The IPO attracted applications equivalent to 122.7 million shares, more than 9 times oversubscribed.
The trading price of the Company rocketed 120% above the listing price of NT$45 on the first day of the trading, marking the largest first-day trading price increase of the year on GTSM, and the total trading value reached NT$1.1billion. The closing market cap of the Company is NT$11.7 billion (US$395 million).
Taiwan-based Aleees, formed in 2005, is the world’s largest supplier of lithium iron phosphate (LiFePO4) material which is one of the most advanced compound for electric energy storage. The company provides integrated solutions for electric public transport, including LFP-NCO cathode material, battery swap systems and E-buses. The company is the market leader of 100% electricity-powered buses in Taiwan and is targeting to capture the vast green transport opportunities in mainland China. The Company posted the revenues of NT$453 million for the cumulative three quarters of 2013 and is likely to mark three years in a row of revenue growth by more than 40%.
The CID Group has worked hand-in hand with Aleees in multiple ways to achieve its outstanding growth, including facilitating the Company’s overseas business development, shaping the go-to-China strategies, introducing industry experts and establishing strategic partnership. Also, CID helped Aleees in the IPO process such as enhancing its investor relationship strategy and introducing capital market networks.
CID invested in Aleees through The Greater China Venture Capital Fund III in 2012 and held approximately 4.5% of the Company. Based on the closing price on December 9th , CID has achieved approximately 2.3x multiples and 61% IRR for the investment. Aleees is the Firm’s 2nd IPO in December and the 80th exits among its 171 portfolio companies.
Received more than 11 times oversubscription, TWI successfully listed on the main board of Taiwan Gretai Securities Market (“GTSM”)
Dec 3, 2013
The CID Group (“CID”) is pleased to announce that TWI Pharmaceuticals, Inc, (“TWI” or “the Company”) (Bloomberg Ticker: 4180TT), a leading specialty pharmaceutical company, has successfully transferred from the emerging board and listed on the main board of Taiwan Gretai Securities Market (“GTSM”) on December 3rd , 2013.
The listing of TWI received more than 11 times oversubscription to the issuance of 12.9 million new shares with approximately NTD3.3 billion of capital raised. The trading price of the Company hiked more than 40% or NTD100 above the listing price NTD248 during the first day of trading, and closed at NTD330. The closing market cap of the Company reached NT$37 billion (US$1.3 billion). Based on the closing price on December 3rd, CID has achieved approximately 5.6x times on the investment of TWI.
Founded in 2010, TWI is the first Taiwan-based pharmaceutical company that focuses on developing and manufacturing Paragraph IV and non-Paragraph IV drugs with high technical barriers. The core team was led by renowned Taiwanese scientists that have extensive overseas experience in specialty drugs development and strong partnership with marketing channels in the US and EU. The Company is highly recognized for its unique R&D capability and focus on specialty products with higher margins than normal generic drugs. The Company was approved for listing on the Emerging Board in 2012, one year after its establishment, and achieved listing in the Main Board in the subsequent year.
The Company has filed 9 generic drugs under ANDAs to the FDA, and expects to grow its revenues by more than double and become profitable within the next two years upon its new products launching. The Company currently posted the revenues of NT$192 million and net loss of NT320 million for the cumulative three quarters.
CID invested in TWI as one of its first institutional shareholders in 2012, through the Greater China Venture Capital Fund III. The investment was based on CID's value chain investment strategy to identify leading local market players and create value via integration of global resources. CID has 11 portfolio companies in healthcare sector across China, Taiwan and the US. Over the past 15 years, the Firm has achieved 79 exits from its 171 portfolio companies.
Closes oversubscribed US$ 100M fund, with 50% GP commitment - The CID Group Completes Greater China Fund IV fundraising
Aug 16, 2013
The CID Group (“CID” or “The Firm”) today announced the first and only close of CID Greater China Fund IV (“Fund” or “CID IV”). The Fund is a successor fund to the US$400M CID Greater China Venture Capital Fund III. The Firm kicked off the fundraising in March, and received over US$ 425M demand from both existing and new investors within less than 4 months. With goals to better align GP-LP interests and to deliver superior returns, the general partners worked closely with the limited partners and several pipeline investments’ management teams, and devised an innovative structure in which the GP will commit 50% of the new fund and finalize the fund size at US$100M.
“We are truly gratified by the confidence and trust from our limited partners, most of whom have supported CID for many years. The successful closing of the new Fund is an endorsement of our investment model and track record for the past one and a half decades,” said Steven Chang, the founder and managing partner of The CID Group.
Founded in 1998, CID is a leading private equity and venture capital firm covering both Taiwan and China. The Firm is managed by one of the region’s largest and most experienced investment teams and retired CEOs of multi-billion market cap international companies. CID has eighty five local professionals operating in Taipei, Shanghai, Beijing, Chongqing and Silicon Valley. Supported by the sovereign wealth funds, state pension plans, financial institutions, industrial corporations, endowments, foundations and family offices in the United States, Europe and Asia, CID has raised Fund I of US$ 110M in 2004, Fund II of US$ 225M in 2007, Fund III of US$ 400M in 2010, all of which were oversubscribed and closed at the hard cap.
The new fund will be different from prevailing fund structures in the market. The GP commits 50% of the capitals to invest in every deal alongside with the limited partners. The Firm also develops a unique fund structure to generate higher returns and better capital efficiency for the limited partners, and achieve stronger alignment of interests among the investors, general partner and portfolio companies.
“We have been a long-time partner with CID and are delighted to see CID going from strength to strength. CID could have raised a new fund similar in size to CID III, but chose instead to cap CID IV to US$ 100m and increase the general partner’s commitment to 50% of the fund. This is rare in the private equity world and is a clear reflection of CID’s confidence in its ability to deliver stellar returns”, said Yewhong Goh, Managing Partner of Axiom Asia.
"We have high conviction on CID because of its systematic and thematic approach to making investments, and its experienced team with a long-term mindset", noted by a leading Asian Endowment.
“We appreciate the support from the limited partners in our continued pursuit of the highest standard of integrity, commitment and excellence.” Mr. Steven Chang added: “The new fund structure demonstrates our commitment to building a long-term partnership with both our investors and investee companies which we believe will contribute to more consistent and outstanding performances.”
CID IV will continue to carry out the investment strategy since the Firm’s inception –integrating global resources to create synergistic business. The strategy focuses on tracking global industry migration trends, identifying first-mover opportunities in the region and investing in industrial value chains. The Fund invests in multi-stage, multi-sector and industrial integration opportunities in China and Taiwan. CID has invested in 192 portfolio companies across technology, education, consumer retailing and services, healthcare, mobile internet and big data sectors during the past fifteen years.
“We are excited to continue our partnership with CID and appreciate the efforts made to find the best balance of capital and opportunity in the pursuit of strong returns. We fully support the plan for CID IV which takes into account alignment of interest with LPs,” said Joseph Manzinger, CEO of the Hillman Company.
Edward J. Grefenstette, the President and Chief Investment Officer of The Dietrich Foundation, noted: “The Dietrich Foundation is exceedingly pleased to continue our partnership with CID. We were deeply impressed with the team’s disciplined, well-conceived plan to structure Fund IV to seize market opportunities generating the most attractive risk-adjusted returns.”
“We are a long-term business partner with the entrepreneurs, and we built CID to be a resources integration platform for our portfolio companies to create long-term value and pursue exceptional growth,” said Charles Chang, co-founder and senior partner of CID. The Firm has achieved an outstanding and consistent track record of 79 exits (44 IPOs and 35 M&A/trade sales), regardless of multiple economic cycles. This year, the Firm plans to announce 5 IPOs including one Chinese company listing in Taiwan, one Taiwanese company listing in China and three other IPOs of technology and healthcare companies in Taiwan.
David D. Gonino, the Chief Investment Officer of The Alfred I. duPont Trust, stated: “The duPont Trust is excited to commence a partnership with CID. We try to align ourselves with a select group of exceptionally high quality partners around the globe, and our commitment to Fund IV reflects the high degree of conviction and confidence we have in the CID team.”