SinoTech Energy, a China-based provider of enhanced oil recovery services formerly known as Tianjin New Highland Science and Technology Development Company, has set the terms of its flotation on the Nasdaq stock exchange.
SinoTech will float 19.7 million American depositary shares (ADS), each representing two ordinary shares worth a maximum $4.75 each, according to its amended regulatory filing.
At its initial public offering (IPO), SinoTech will issue 15.8 ADSs and its shareholders will sell 3.95 million.
Outside of management, SinoTech main institutional investors are China Commercial Bank (CCB), venture capital firm Sequoia Capital and Germany’s Deutsche Bank. Sequoia is retaining its shares while CCB and Deutsche are selling 1.6 million (1.25% of the total issued) and 655,738 (0.5%) respectively.
A further 2.96 million ADSs will be available to the underwriting banks UBS, CIti and Lazard if there is enough demand from investors. If all the ADSs are sold at the maximum price the IPO will raise $215.6m.
SinoTech said it would part of its proceeds to repay a $50m loan from Deutsche Bank.