Core Insights - The number of IPOs in A-shares is projected to drop to 100 in 2024, a decrease of 68.05% from 313 in 2023, indicating a significant challenge for private equity (PE) funds in exiting investments through public listings [1][2] - The China Securities Regulatory Commission (CSRC) issued guidelines to support private equity funds in acquiring listed companies to promote industrial integration, leading to increased collaboration between PE funds and listed companies [1][2] Group 1: Transaction Overview - Tianmai Technology, a high-tech company in the intelligent public transportation sector, is undergoing a share transfer where Qiming Fund will acquire 26.10% of its total shares, making it the controlling shareholder [2][3] - The transaction is notable as it is the first case of a PE fund acquiring a listed company following the CSRC's new guidelines [2][3] Group 2: Shareholding Changes - Prior to the transaction, the controlling shareholder, Guo Jianguo and his family, held 49.73% of Tianmai Technology's shares. Post-transaction, Guo's shareholding will decrease to 23.63% while Qiming Fund will hold 26.10% [5][7] - The total transaction price is set at RMB 452 million, with share prices of RMB 28.26 and RMB 24.25 for different shareholders [5][7] Group 3: Transaction Process - The share transfer agreement has been signed, but the completion of the transaction requires the establishment of the PE fund and compliance with regulatory approvals [8] - The transaction is subject to confirmation by the Shenzhen Stock Exchange for compliance before the share transfer can be processed [8] Group 4: Key Considerations - The new controlling shareholder, Kuang Ziping, will need to ensure stable control despite the close shareholding percentages with the former controlling shareholder [9] - There are commitments from the former controlling shareholder not to seek control over the company and to provide options for Qiming Fund to purchase remaining shares [9][10] Group 5: Future Implications - The acquisition is expected to allow Qiming Fund to achieve investment exits in a tightening IPO environment, potentially leading to a new model for PE funds to integrate industrial resources [15] - The transaction highlights the importance of maintaining the listed company's status and ensuring compliance with financial performance requirements to avoid delisting risks [13][15]