December 2009
SEAVI Advent’s portfolio Shengli Oil & Gas Pipe Holdings Ltd completes its Initial Public Offering on the Hong Kong Stock Exchange. Shengli Oil & Gas Pipe Holdings Ltd (“Shengli”) is a leading China-based manufacturer of large diameters oil and gas pipes, in particular spiral submerged arc welded (“SSAW”) pipe which are the predominate type of line pipes used in construction of high pressure oil and gas pipeline in China. Shengli is China’s largest oil and gas line pipe company in terms of production capacity as of 31 December 2008. Major pipeline projects using their line pipes include the First West-East Gas Pipeline, the West Oil Pipeline, the Central Asia-China Natural Gas Pipeline and the Sichuan Gas Pipeline, each of which is over 1,000 kilometers in length.
With seven SSAW pipe production lines that have a collective annual production capacity of 540,000 tonnes of oil and gas line pipes, Shengli lead the PRC industry in terms of the number of production lines and production capacity. In 2008, their production volume represented approximately 17% of the SSAW pipes in the PRC oil and gas line pipe market.
On the rationale of the investment into Shengli, Teo Yi-dar of SEAVI Advent commented, “With the continued growth in domestic consumption, and hence need for energy, we saw the need for China to further expand its Oil & Gas distribution network and hence participated in this investment in 2008.”
Shengli Oil & Gas Pipe Holdings Ltd (1080.HK) completed its Initial Public Offering on 18December 2009, raising a total of US$204mil. Macquarie Capital is the sole global coordinator, bookrunner, sponsor and lead manager.
About SEAVI Advent Private Equity
SEAVI Advent Private Equity, the Asian affiliate of Boston based private equity institution Advent International Corporation, is one of the first private equity and venture capital firms to operate in the Asia Pacific region. Since 1984, the firm has invested over US$500 million into many Asian companies, from growth to late stage, as well as buyout and control transactions. SEAVI Advent has successfully helped more than 40 portfolio companies strengthen their business positions through initial public offerings on the stock exchanges of Singapore, Hong Kong, United States of America, Malaysia, Thailand, Indonesia and Philippines. In recent years, SEAVI Advent has successfully conducted numerous investments and has been instrumental in delivering value for its portfolio companies, which include Venture Corporation Ltd and Yangzijiang Shipbuilding (Holdings) Ltd.
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