Sequoia Capital Takes The Lead In The Private Equity Industry.

　　 In the wave of privatization of stocks, Shen Napeng has the advantage of Sequoia Capital.

Overseas listing this month China concept stocks The privatization craze has reached $19 billion, and a man may play an important role in guessing the next game.

As one of China's billionaire founders of Sequoia Capital, Shen Napeng played a leading role in this round of venture capital and private-equity firms to help Chinese listed stocks withdraw from the US and eventually seek domestic listing. Shen Napeng and Sequoia Capital participated in at least five privatization transactions this month.

A shares have risen sharply this year, and the valuation of domestic stocks is much higher than that of foreign countries.

Alternative Asset Management Co are focusing on companies already holding shares and holding board seats because they are eager to complete due diligence, arrange management and privatized buyout consortia.

CICC pointed out that online retailers such as jumei.com and 500 lottery net may become the next privatization target. Sequoia Capital Holding more than 15% stake in poly America.

"In China's venture capital sector, Sequoia Capital is a big player," said Paul Gillies, a professor at Guanghua School of Management, Peking University. "Now there is a real good opportunity for Chinese Listed Companies in the us to return home and seek higher valuations. Private equity firms are making plans for privatization and re listing. "

According to Peng Bo's aggregate data, the takeover bid for private shares this year is 23% higher than the 30 days before the announcement. The street is the latest enterprise to declare privatization. The company said on Tuesday that it had received the offer from Sequoia Capital, venture capital firm MatrixPartners China, Huatai Rui fund and co founder Tang Yan.

Shen Napeng and Sequoia participated in other acquisitions this month, including $770 million acquisition of real estate service company Yi Ju (China) Holdings Limited, $1 billion 100 million privatization chain hotel operator Home Inn group, $586 million privatization of Bona film group, and $8 billion 400 million acquisition of China's second largest search engine operator Qihoo 360 technology limited.

Shen Napeng founded Sequoia Capital China in 2005 and founded Ctrip in 1999. According to foreign media reports, his success has made him one of the richest people in China.

Sequoia is one of the largest shareholders publicly disclosed by jumei.com, based in Beijing, with a market capitalization of US $3 billion 400 million. However, its share price fell by 1% in the past year, while Shanghai listed shares rose by 130% on average, while Shenzhen shares rose 164%.

Guo Qi, an analyst with Summit Research Partners in San Francisco, pointed out in e-mail that there are huge differences between valuations between the US and A shares, so Sequoia Capital believes that there are arbitrage opportunities. ''

Bloomberg listed in China has only about 10 times earnings per share, compared with 24 times the Shanghai Composite Index and 70 times the Shenzhen market.

Sequoia Capital has nearly 10% stake in the 500 lottery network, which has fallen 22% in the past year. Sequoia also holds a stake in Online Travel Corporation road cattle technology.

Shen Napeng is director of Yi Ju (China), Home Inn, Qihoo 360 and unfamiliar street, and is also online. Clothing company Mcglaughlin's former chairman.

Mizuho Securities analyst said in a June 23rd report that the recent privatization plan may take more than six months to complete because companies need to form a special committee to evaluate the purchase plan and to consider other quotations. The report also pointed out that the gathering era, Youku potatoes and SouFun may join the next wave of privatization.

"I anticipate that most Chinese listed stocks will be privatized in the US and the targets are coming back to China next year," Gillies said. "This is a typical case. private equity Industry opportunities. "