China’s only privately-owned high-tech investment and development park, CyberCity Shenzhen, has announced it plans to list on the Stock Exchange of Hong Kong before the end of the year, possibly via a reverse takeover of an already-listed firm.
CyberCity, China’s most ambitious private IT project, was set up two years ago by a group of investors including the current chairman, Simon Jiang, former deputy head of the United Nations Pension Fund and managing director Amy Kong, previously head of GTF Global Asset Management and Asian head of a $5bn US pension fund.
With the stated aim of becoming the major player in China’s rapidly-developing internet and software development markets, by bringing together venture capital and physical facilities, CyberCity has attracted some top private equity investors. They include Paul Stephens, founder of California-based Robertson Stephens Investment Fund, and Ivanhoe Capital chairman Robert Friedland, who is co-chairman of CyberCity Shenzhen.
Proceeds from the listing will be used to build on the initial 360,000 square-meter development site to a design by international award-winning US architect IM Pei. Construction began in May, with the first two buildings not scheduled to be completed until next March. However 60 companies ranging from well-known multinationals to locally-based start-ups have already signed agreements to locate at the site. We want a mix that will give the most upside for investors because our purpose is not to get rental but incubate and develop these project companies, said Kong.
In the past few weeks CyberCity has bought into several Chinese internet and software firms including a Beijing-based employment web site, a Shenzhen education-software developer, and a Shanghai hospital and medical services information provider. The aim of the investments is to build expertise and downstream management at the firms to build their future listings and joint-venture prospects, Kong said.
