Tencent : backed Linklogis launches HK IPO to raise $1.06 billion - term sheet

HONG KONG (Reuters) - Tencent-backed Chinese fintech firm Linklogis is aiming to raise up to $1.06 billion in its Hong Kong initial public offering (IPO) launched Friday, according to a term sheet reviewed by Reuters.

The firm, which specialises in supply chain finance technology, is selling 452.87 million shares at a price range of HK$16.28 to $HK18.28, the term sheet shows.

The sale represents 20% of the company's total issued shares, and there is an option to sell another 67.9 million shares to raise a further $159.6 million.

Before the IPO, Tencent held 18.89% of Linklogis, according to its listing documents. The company also counts CITIC Capital, GIC and Standard Chartered as major investors.

The deal has attracted six cornerstone investors who will take $365 million worth of stock, the term sheet shows.

BlackRock and Fidelity are the largest cornerstone investors, having subscribed for $100 million worth of stock each.

The final price of the shares will be set next Wednesday and the company will start trading on the Hong Kong Stock Exchange on April 9.

Goldman Sachs and China International Capital Corp are leading the IPO.

(Reporting by Scott Murdoch. Editing by Gerry Doyle)

By Scott Murdoch