JD Capital Becomes the First NEEQ-listed Company to Acquire an A-share Company
JD Capital (430719) acquired 100% equities of Jiangxi Zhongjiang Group Limited (shortly known as Zhongjiang Group) with 4.1 billion yuan through bidding on May 15.
Zhongjiang Group holds 72.37% equities of Zhongjiang Real Estate (600053). After the transaction, JD Capital will indirectly take Zhongjiang’s stakes, thus becoming the first NEEQ-listed name holding controlling shares of one A-share company. It will also be the first case for comprehensive asset management institutions in China.
Connecting to the A-share market
According to the announcement, JD Capital intended to inject part assets it held into Zhongjiang Real Estate, with the detailed schedules already under preparation. Once completed, this asset injection would help JD Capital list its relative businesses on the A-share market. JD Capital would thus build up a bridge between the NEEQ and the A-share market, making future financing and capital operation more convenient.
Subsequent re-construction of Zhongjiang Real Estate merits attention after the introduction of “big asset management concept” amid unprecedented popularity of M&A and reconstruction in a bullish A-share market.
Venturing into diverse asset management businesses
According to public data, since it got listed on the NEEQ in April 2014, JD Capital has completed two private placements and raised a total fund of 6 billion yuan. As of now, JD Capital boasts a total equity of 5 billion yuan and net assets of 11 billion. On May 15, it closed at 13.55 yuan per share, the market cap reaching 70 billion yuan. JD capital tops the NEEQ in terms of market cap, equity numbers and transactions. JD Capital’s innovation this time would also be followed up just like many other PEs rushed to get listed on the NEEQ to follow JD Captal’s suit.
As for JD Capital’s strategic deployment, it has successfully ventured into public fund management, securities operation, Internet financial business, individual venture investment, investment with inferior beneficiary claims and other novel asset management fields through establishing JT Asset Management, Jiuxin Finance and Wu Xu Xing Tech, investing in Genius Plan and Longtai Investment and holding controlling shares of JZ Securities.
In addition, on April 29, JD Capital announced to begin managing commercial banks through initiating the establishment of a private bank.
According to the responsible person of JD Capital, becoming a top-ranking asset management institution is their strategic goal in the long run. JD Capital plans to acquire better resources, capacity and system through controlling shares of Zhongjiang Real Estate, so as to provide more comprehensive financial and industrial investment services to individual and enterprise investors.
- Jiuding Group
- JT Asset Management
- JX AMC