ARCH Arc Capital

TIDMARCH

RNS Number : 7393W

ARC Capital Holdings Limited

24 November 2010

ARC Capital Holdings Limited

24 November 2010

ARC Capital Holdings Limited

Goodbaby International Holdings Limited Successful Initial Public Offering

ARC Capital Holdings Limited ("ARCH") (AIM: ARCH), is pleased to announce that on 24 November 2010, its portfolio company Goodbaby International Holdings Limited ("Goodbaby" or the "Company") successfully completed an initial public offering and listing on the Hong Kong Stock Exchange and is now trading under the stock code (HKG: 1086).

The retail tranche of the offering was more than 1,450 times oversubscribed, ranking Goodbaby as the third most sought after IPO in the Hong Kong Stock Exchange's history with the highest level of oversubscription in Hong Kong over the past three years. At the end of the first day of trading, shares of Goodbaby closed at HK$5.80, or 18.4% higher than the initial offering price of HK$4.90.

With the issuance of new shares and a sell down of old shares, ARCH's effective ownership of Goodbaby was reduced to 16.6% on a fully-diluted basis, reflecting a holding of 165.7 million shares. Based on Goodbaby's 24 November 2010 closing price and the realisation proceeds, ARCH's investment represents a 4.7x gross multiple of cost and a 44.7% gross IRR. The valuation of ARCH's interest in Goodbaby increased US$61.6 million from the 31 October 2010 NAV, after applying a discount pursuant to ARCH's valuation policy. ARCH's interest in Goodbaby is subject to a six month mandatory lock-up followed by an additional six month conditional lock-up.

Headquartered in China, Goodbaby is a leading international durable juvenile products company which is the largest supplier of strollers in North America, Europe and China. Goodbaby designs, develops, manufactures, markets and sells its products through multiple channels in the domestic and international markets. The investment in Goodbaby was structured as one of the first leveraged buyouts in China in January 2006. In June 2006 and August 2008, ARCH invested US$23.9 million for a 25.3% ownership stake in the Company and US$4.5 million in a shareholder loan, respectively.

Commenting on the successful listing, Non-Executive Director of Goodbaby and Managing Partner of ARC Capital Partners Limited, Rachel Chiang, said:

"Having been involved with Goodbaby for over a decade as a member of the Board, Goodbaby has been instrumental in the evolution of China's juvenile products retailing industry spurred by the growth in domestic consumption and its innovative approach to product development and distribution. The successful listing of Goodbaby provides the company with the resources to further expand in a new era of development."

For more information, please contact:

 
 MANAGER:                      LEGAL COUNSEL: 
 Allan Liu, Managing Partner   Jon Lewis, General Counsel 
  c/o ARC Capital Partners      c/o Pacific Alliance Group 
  Limited                       16/F St. John's Building 
 13/F St. John's Building       33 Garden Road, 
  33 Garden Road,               Central, Hong Kong 
  Central, Hong Kong            T: (852) 2918 0088 
  T: (852) 3115 0243           F: (852) 2918 0881 
  F: (852) 3115 0244           jlewis@pacific-alliance.com 
  aliu@pacific-alliance.com 
 BROKER:                       NOMINATED ADVISER: 
 Hiroshi Funaki                Philip Secrett 
 LCF Edmond de Rothschild      Grant Thornton Corporate 
  Securities                    Finance 
 T: (44) 20 7845 5960           T: (44) 20 7383 5100 
 F: (44) 20 7845 5961           Philip.J.Secrett@gtuk.com 
 funds@lcfr.co.uk 
                              ---------------------------- 
 INVESTOR RELATIONS:           MEDIA RELATIONS: 
 Chong Min Yi                  Andrew Walton / Laura Pope 
  Pacific Alliance Group        Financial Dynamics, London 
 T: (852) 3719 3319             T: (44) 20 7269 7100 
  cyi@pacific-alliance.com      Christine Wood / Queenie 
                                Tsao 
                                Financial Dynamics, Asia 
                                T: (852) 3716 9800 
                              ---------------------------- 
 

About ARC Capital Holdings Limited

ARC Capital Holdings Limited ("ARCH") (AIM: ARCH) is a closed-end investment company with net assets of US$591.5 million as at 31 October 2010. ARCH was admitted to trading on the AIM Market of the London Stock Exchange in June 2006. ARCH makes and holds investments in the retail, consumer goods and consumer services sectors, principally in China but also in neighboring Asian countries. Target investments include regional hypermarkets and supermarkets, dominant consumer brands, specialty retail chains, retail property assets and retail and consumer service providers.

For more information about ARCH, please visit: www.arch-fund.com

ARC Capital Holdings Limited is a member of Pacific Alliance Group ("PAG"), one of the leading Asian alternative investment managers. Founded in 2002, PAG manages funds covering private equity, real estate, hedge fund and distressed investments and has offices across Asia including Hong Kong, Shanghai, Beijing and Tokyo.

For more information about PAG, please visit: www.pacific-alliance.com

This information is provided by RNS

The company news service from the London Stock Exchange

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