AAA Tanyuan proves the right material in $59m IPO

Tanyuan proves the right material in $59m IPO

Legend Capital, a corporate venturing fund backed by conglomerate Legend Holdings, has exited China-based graphite film producer Tanyuan Tech in a RMB409m ($59m) initial public offering, China Money Network reported yesterday.

The company issued 52 million shares on the Shanghai Stock Exchange yesterday priced at RMB7.87 each.

Founded in 2010, Tanyuan produces graphite film with high potential for thermal conductivity and heat dissipation, meaning it can be used to release heat generated by smartphones.

Legend Capital paid RMB60m for a 10.5% stake in Tanyuan in 2012 before buying another 2.7% for RMB27m the following year, according to China Money Network, which cited a post by Legend on social network WeChat.

The unit holds a 10% stake post-IPO while the stake held by venture capital fund GSR Ventures was diluted from 6.7% to 5% in the offering.

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