Services

Expanding the reach of Chinese media and arts to a global platform

Macquarie Capital acted as joint sponsor, joint global coordinator, joint bookrunner and joint lead manager on the $US184 million (post shoe) Initial Public Offering (IPO) of Cathay Media and Education Group Inc.

Sector	Services
Sub-sector	Education
Location	China

Opportunity

Cathay Media and Education Group Inc. (Cathay Media) is a media group which operates a leading television and film production business and a higher education business focused on media and arts.

As one of the pioneers in the private television program production industry in China, the company has delivered popular television shows for over 20 years and enjoyed a strong reputation, with all productions during 2017-2019 ranking no. 1 in viewer ratings in China when first aired¹ . Cathay Media also operates the Nanjing Media College, formerly known as Communication University of China, Nanjing, which was ranked first in media & arts independent colleges in China throughout 2016-2020².

In 2020, Cathay Media was seeking listing status on the Hong Kong Stock Exchange (HKEX) and additional investment to support their fast-business growth and expansion.

Approach

As the lead sponsor, Macquarie Capital worked closely with the Hong Kong Stock Exchange to complete the initial vetting process and successfully list the transaction despite volatile market conditions spurred by the COVID-19 pandemic.

In demonstrating our global marketing effectiveness, we led four rounds of non-deal roadshows (covering over 200 investors globally) and three rounds of reverse roadshows, allowing sufficient time for fundamental investors to build conviction towards Cathay Media.

We facilitated the process of introducing reputable cornerstone investors and helped Cathay Media create a unique and attractive equity story that led to the conversion of four cornerstone investors (Orchid Asia, Snow Lake Funds, Foresight Orient Funds and Oceanic with the total investment of $US72.5 million) and strong anchor demand from high quality institutional investors.

Outcome

Macquarie Capital’s global distribution platform led to a long book of demand. On day one, the institutional book was significantly covered across the range and we sourced approximately 80 per cent of the total demand and successfully guided the investors to price at the top of the range, including leading the conversion of the top five institutional non-cornerstone investors.

The IPO of Cathay Media achieved the best first day performance ever of an education company listed on the HKEX, raising $US184 million.

As part of Cathay Media’s latest business expansion, the IPO will provide exceptional support in expanding the company’s new training business, which covers arts examination training, children arts training and other high-end training programs.

The 1st Media and Arts

higher education and training company listed on the Hong Kong Stock Exchange

7th Hong Kong IPO

in the Chinese education sector by Macquarie

The best 1st day performance

ever of an education company listed on the Hong Kong Stock Exchange

“It is a rewarding experience having to worked with Cathay Media and Education Group as it marks our continuous success in elevating Chinese education companies to global exposure, as well as expanding the reach of Chinese arts and media.”

Raymond Sun, Co-Head of Equity Capital Solutions, Macquarie Capital Asia

1. According to Frost & Sullivan

2. According to the Chinese Universities Alumni Association

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Macquarie Capital

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