Fontainburg


	About Our Clients

	Industry Focus

	Successful Cases

	Execution Experience

	Successful Cases


	Assets and Operational Restructuring, IPO

	*Fontainburg Role: Financial Advisor*


				Case Background

				Our client was the Department of Transportation of a coastal province in Mainland China. With a total investment of about RMB 100 billion, the client had significant high-grade assets such as roads and bridges. However, with the rapid development of the local economy, the construction and maintenance costs of roads had increased substantially, resulting in the lack of funds for further infrastructure investment. At the same time, a great deal of high-quality assets had never realized their maximum value under the planned economy.

				Client's Requirements

				The client needed to develop a plan to use its assets more efficiently and enhance its market value. The client also needed to investigate alternative sources of funding to further expand the infrastructure capability of the province and to address its deteriorating financial condition.

				Approach and Key Issues

				Fontainburg needed to develop a comprehensive plan to appropriately address all relevant issues and do so within a complex legal and regulatory framework. Key issues included asset valuation and restructuring, shareholder structure, financial structure, and identifying alternative sources of investment including a listing on a local or overseas stock market.

				Fontainburg Solutions

				Following thorough due diligence of the operating conditions and development prospects of all assets, Fontainburg prepared a integration and restructuring plan and a detailed action plan. Fontainburg proposed to restructure part of the high-quality assets and to establish an investment entity (a state-owned company) as a vehicle to be listed on a local stock exchange. Fontainburg also provided a detailed valuation to determine an appropriate pricing range and other financial projections to assist in the IPO process. The client successfully listed the State-owned infrastructure company on the Shanghai Stock Exchange and raised RMB 1.3 billion in the initial offering. The company has since become an industry leader showing steady growth and has been added to several Shanghai Stock Exchange Indices.

	<<Back