Exit of the Year – IPO

CSI Solar (CDH Investments, CICC Capital, Oriza Holdings, SND Ventures Group, Tsinghua Capital)

CSI Solar, a China-based manufacturer of modules used in rooftop solar units, raised CNY 6bn (USD 840m) through a Star Market IPO in June 2023. The company sold 541m shares for CNY 11.1 apiece. As of October 10, it was up 25% on the IPO price with a market capitalisation of CNY 52.5bn. CSI Solar was formed in 2020 following a CNY 8.7bn carve-out of China assets from NASDAQ-listed Canadian Solar. CDH Investments and other investors backed the deal and got 20%. It contributed USD 68m for a 5.3% interest. As of June 2023, CDH had an unrealised return of 5.6x.

Global Health (Novo Holdings, SBI Holdings, Temasek Holdings, The Carlyle Group)

Global Health, which operates five hospitals and six clinics in India under the Medanta brand, raised INR 22bn (USD 265m) through a domestic IPO in November 2022. The company sold 22.1m shares for INR 336 apiece. As of October 10, it was up 123% on IPO price with a market capitalisation of INR 200bn. The Carlyle Group acquired 25% of Global Health in 2013 for INR 9.5bn. Prior to the offering, it sold a 5.66% interest to Temasek Holdings, RJ Corp, Novo Holdings, and SBI Holdings for INR 4.8bn. Carlyle sold its remaining 19.98% interest in the IPO for INR 17bn.

Hesai Technology (Detong Capital, GL Ventures, Lightspeed China Partners, Lightspeed Venture Partners, Pagoda Investment, Qiming Venture Partners, ZhenFund)

Hesai Technology, a China-based developer of sensors used in autonomous driving systems, raised USD 190m through a NASDAQ IPO in February 2023. The company sold 10m American Depository Shares at USD 19 apiece. As of October 10, it was down 48% on the IPO price with a market capitalisation of USD 1.21bn. Hesai’s offering – which followed the resolution of a longstanding audit dispute between US and Chinese regulators – is the largest of the year by a PE-backed Chinese company. Lightspeed China Partners was the company’s earliest backer and remains the largest external stakeholder. Lightspeed’s global funds came into later rounds.

Mankind Pharma (Capital International, ChrysCapital)

India-based drug maker Mankind Pharma raised INR 43.3bn (USD 519m) through a domestic IPO in May 2023. The company sold 40.1m shares for INR 1,086 apiece. Capital International and ChrysCapital Partners made partial exits, realising INR 21.6bn and INR 10.8bn. As of October 10, the company was up 64% on the IPO price with a market capitalisation of INR 720.5bn. ChrysCapital first backed Mankind in 2007 and exited in 2015 with a 7.6x return. It returned in 2018, leveraging co-investment to buy a 10% stake for USD 325m, and supported a shift towards therapeutic treatments and an expansion of distribution channels.

Rise Consulting Group (Sunrise Capital)

Rise Consulting, a Japan-based management consulting business, raised JPY 10.8bn (USD 72.7m) through a domestic IPO in September 2023. The company sold 12.7m shares for JPY 850 apiece. As of October 10, it was up 11% on the IPO price with a market capitalisation of JPY 23bn. Sunrise Capital, which acquired a majority interest in Rise in 2020, made a partial exit with proceeds of JPY 9.6bn. It retains approximately 50% of the company. The GP – which has delivered a 7x return, partially realised – helped Rise grow headcount to 200 and develop its offering across strategic consulting, business transformation, and digitalisation.