China-based human resources software provider CDP Holdings has filed to raise up to $125m in a US initial public offering that could give online recruitment firm 51job the chance to exit.
CDP has built a software platform that helps businesses manage their employees, integrating a range of functions including payroll, tax and social security management and employee benefits. It made a $22m net loss in the first nine months of 2019 from $94.3m in revenue.
The company has formed partnerships with international enterprise software producers including SAP and Workday. It will put the IPO proceeds into sales and marketing and further development of its CDP EcoSaaS platform.
The IPO filing states CDP received $20m in series D financing from private equity fund North Haven Private Equity Asia in 2016 and $60m in series E funding from 51job last month. The filing indicates it invested as an existing backer.
China Broadband Capital (CBC) led a series C round of undisclosed size for the company in 2012 that included Sumitomo Corporation Equity Asia, part of diversified conglomerate Sumitomo, as well as Fidelity Growth Partners Asia, a subsidiary of investment and financial services group Fidelity, and Investor AB.
The filing calculates shareholder ownership by adding together the number of shares an investor owns and the amount they can buy within 60 days of the IPO prospectus, which would hypothetically place the stake held by 51job – CDP’s second largest shareholder – at 20.2%.
Chairman and CEO Wei Wang and company president Wei Lu own the largest stake through a vehicle called Garamond Partners. Other notable investors are CBC, Investor AB, North Haven, CSV Capital Partners and Fidelity Growth Partners Asia’s successor, Eight Roads.
BofA Securities, Citigroup Global Markets and Haitong International Securities have been hired as underwriters for the offering, which is slated to take place on the New York Stock Exchange.
