Sequoia Capital and Everbright shares led a total of 16 joint venture China PE big science and technology, BGI signed a two-way big demands on gambling agreemen.
In Shenzhen, there is a widespread view, Shenzhen has three treasure that Tencent, Huawei and BGI.
The former two are renowned the world over, but BGI has become a low-key mystery, many people do not understand this half body half the company's organization. In the capital circles, it is considered the biosphere Tencent, its business in China is unique.
"You heard BGI it? Quickly took the team to see that this company is terrific." As early as two years ago, Wang Dongming, chairman of CITIC Securities investment bank hurried to his executives' attention BGI quickly".
Flocks of PE, investment banks, brokers who are raring to various funds, sought through various relationships, think and Genomics Research Institute president Jian catch the line. The strong and numerous BGI PE / VC company complete with stark contrast.
Unimaginable: Why so fanatical hundreds of millions of capital chasing this low-key hidden in the northern industrial zone of Shenzhen Yantian a company?
PE wear out BGI threshold
It's hard to imagine a batch of agencies flooded into the outskirts of a foot Yantian old boss left shoe factory. BGI rented this little shoe factory converted into their headquarters. This old shoe factory, entrenched the world's largest human genome sequencing company.
BGI There's science and technology, health, agriculture, information such as the four blocks of assets.
The second half of 2012, almost wear out the threshold for investment institutions BGI headquarters. BGI when there is intent to acquire American CG financing companies, keen agencies who have brainer.
"Waves of large and small organizations, says there are hundreds of no exaggeration." Team who had been to institutions who BGI memories.
However, they are eyeing the Chinese big healthy piece of fat. UW Health is the company was founded in July 2010, and is optimistic that a subsidiary of UW Medicine, the main business is the business of prenatal diagnosis. But the beginning of 2012 Love Big Medicine commercialization, there is no financing plan. So many institutions instead invest in China largest technology.
According to people close to BGI estimates, was well-known institutions have had to do the research, there are about five or six dial tone when you do institutional investors have been to a large headquarters in Shenzhen, China, 16 institutions was finalized tour to go.
From the final shortlist of view, China Everbright Holdings, Sequoia Capital, venture deep, cloud front investment, Greenwoods Asset, Olympus Capital, Softbank China, Sheng bridge and investment among them. BGI investment target for technology companies.
"A good relationship, we are close to Wangjun because he was graduated from Beijing University, Beijing University system we are all, in addition, we have this big company in China has a special feeling, a world leader in BGI, but do gene sequencing is very important. "sonhwa capital insiders.
An insider said:" The investment institution of investment BGI, mostly ulterior motives, and hope to reach BGI.” and Wang Jian had also publicly stated in the media, BGI will consider adopting PE mode of financing, and the investor of BGI have priority subscription right of serives.
After doing due diligence, the institutions are the prospects for the development of gene sequencing is very good. "We were responsible for BGI project team members have about 4-5 and we due diligence, mainly on the main sequence point, the sequencing sites in Hong Kong also went to see that time and we are still together due diligence investigation of Sequoia Capital, China Everbright Holdings, Softbank and other institutions. "an investment in China's PE largest technology project leader said.
Arrogant BGI: 16 organizations signed a two-way bet against
But the high demand BGI, or so many organizations doing tune after backing out.
The informed sources, the BGI in screening large institutional investors have a few rigid standards, including in the PE industry visibility, well-known cases, brand, financial strength, value-added services after the vote.
After the initial screening, BGI technology again and institutions deal with specific valuation problems. It is reported that BGI technology was valued at 4 billion, mainly based on 4-5 times the annual income of Chinese largest technology accounts. UW Technology from 2009 to 2012 revenues were 343 million, 1.037 billion, 1.263 billion yuan, 1.105 billion.
A person close to BGI told reporters, "It was determined that the valuation of the amount of wrangling wander." Investment institutions and specialized in BGI bid bargaining sector began bargaining, the right to speak in this game a long process, from research to ultimately determine the investment spent about six months.
Sonhwa aforementioned capital insiders: "Many high-tech companies have the characteristics of high valuations, BGI Technology is no exception because the company is confident of its future development, if gene sequencing costs down, you can do this for everyone. services, the market is very big, so he believes the value of so much money. "
For small organizations, 4 billion yuan valuation is by no means a small number. In general, investing in a project in the tens of millions, while the BGI belong to the larger projects . Therefore, although many small organizations looking to learn a piece, but out of consideration the company's cash flow or abandoned areas. Is finalized by Sequoia Capital and Everbright shares take the lead, and other investment institutions to jointly invest 14 ways.
In addition to valuation, BGI technology let the investment institutions to stop when it talking about the investment time. “BGI raised hopes organization can continue to invest in about 6-10 years, rather than three years on the IPO, it is understood, they did not agree to an institution." One of the sources close to BGI.
At that time, institutional investors do not agree to invest so long, and BGI Technology watched nearing the end of 2012, the company plans to acquire US CG is fast approaching, the need for funds quickly arrival, eventually gave up the terms.
Many investment institutions and BGI had contact , "said UW is very strong." It is reported that China requires a large investment institutions and signed a two-way agreement on gambling, which is for domestic investment institutions is not common.
The aforementioned source explained that to reporters, usually a two-way agreement on gambling in high-growth companies have signed more. "This shows that the company is very strong or very good, if the valuation was growing over the part you have to dilute, similar to equity reduction."
It is reported that the main agreement on gambling request on BGI Technology annual net profit, if it can not reach the required profit, you need to sell some shares to investors. Multi-understand financial weekly newspaper reporter, investment institutions for the completion of BGI performance, standardized management are very satisfied, "more in line with original expectations."
PE shareholders anxious to promote the listed speed
After PE into this year, BGI has changed greatly.
Aforementioned informed source, financing stage, investment bodies corporate governance desire is actually greater than the desire of companies to accept, BGI has been a maverick before the closed-loop mechanism , then there is the investment institutions to intervene, after a fairly long period of running, the business processes, the listed audit, investor relations improved obviously.
Of course, these are in preparation market for the BGI technology . On the one hand, PE / VC exit to seek the listing, so the urge BGI Technology listed as soon as possible, on the other hand is very strong company listed desire and hope to expand on this team and product flow.
The latest case of financial weekly newspaper reporter learned that, not long ago, BGI Technology recently held a board meeting to discuss listing. Last year, the company has completed the shareholding reform, has confirmed the relevant securities and auditing agencies, listed pace is a step forward. Informed sources, the listing will be ready in 1-2 years, the fastest end of the year.
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