Yadea Group sets HKD 1.72 – HKD 2.48 band for IPO

Yadea Group, China’s largest electric scooter maker, has set the price range for its up to HKD 1.86bn (USD 239.7m) initial public offering at HKD 1.72 – HKD 2.48 per share, according to a termsheet seen by this news service and a person briefed with the situation.

The price range represents 8.7x – 12.5x its 2016 forward earnings, the termsheet and the person said.

The company is offering 750m shares – 720m new shares and 30m secondary shares – in the IPO, the termsheet shows. The selling shareholder is pre-IPO investor Kuanjie (Cayman) Investment Centre LP, whose general partner is a wholly owned subsidiary of the Goldman Sachs Group, according to the term sheet.