Carlyle-Backed China Forestry Plans IPO

HONG KONG (Reuters) – China Forestry Holdings Group, a forestry plantation operator backed by the Carlyle Group, plans to raise up to $203 million via an initial offering of shares in Hong Kong late this month.

The company, also invested in by private equity firm Partners Group, is offering 750 million shares at a range between HK$1.6 ($0.207) and HK$2.1 apiece and the IPO pricing will be fixed on Nov. 24, according to a term sheet obtained by Reuters.

China Forestry plans to list on the Hong Kong stock exchange on Dec. 3, the term sheet shows.

UBS (UBSN.VX) (UBS.N) and Cazenove are joint sponsors for the IPO.

Both Carlyle and Partners Group will have a six-month lockup period before they can exit their investments in China Forestry, according to the term sheet.

Carlyle Asia Growth Partners III, one of Carlyle’s Asia-focused private equity funds, invested in China Forestry in January 2008, according to Carlyle’s web site. (

Carlyle runs several funds in Asia with different focuses on growth capital deals, billion-dollar leveraged buyouts and real estate projects.

Carlyle’s co-founder David Rubenstein said last week in Hong Kong that China would be its top pick for investments in the next couple of years. 

In 2006, Washington D.C.-based Carlyle announced it invested US$27.5 million for a stake in Shanghai Anxin Flooring Co Ltd, China’s largest manufacturer and distributor of solid wood flooring.

Anxin planned to list in Hong Kong last year but its IPO plan was delayed by the financial crisis, according to Chinese media reports.

For related Asian private equity news, Reuters 3000 Xtra users can double click on: [LEN-RTRS-ASIA-PVE] ($1=7.749 Hong Kong Dollar) (Reporting by Kennix Chim and George Chen; Editing by Jonathan Hopfner)