Hywin plans a public listing in US to drive further growth
Hywin Holdings, which provides wealth management services in China, filed with the SEC to raise up to USD 48 million in an initial public offering.
Hywin Holdings, one of the leading independent wealth managers in China, is planning for an initial public offering of American depositary shares (ADSs) on the NASDAQ stock exchange. The company intends to list the ADSs under the symbol “HYW”. It plans on raising up to USD 48 million. Hywin Wealth is a top 3 independent wealth manager in China. Founded in Shanghai in 2006, it now serves over 113,000 Chinese HNW clients. Its mission is to be the best wealth management institution for Chinese HNW clients across the entire lifecycle and across onshore-offshore markets.
CLICK HERE to read an extensive article we published last year based on an interview with Nick Xiao, who joined Hywin Wealth in November 2019 as Vice President in charge of overseas business, and also took up the reins as CEO of its Hong Kong arm.
Here are a few bullet points from the filing that highlight the value proposition -
Hywin has six main investment highlights:
- Rapid growth in its high net worth client base
- Diversified product offerings
- Extensive network coverage with strong distribution and servicing capabilities
- Digital strategy powered by AI & big data
- Comprehensive risk management system
- Seasoned management team with global perspective and extensive experience
Rapid growth in its high net worth client base
- As of June 2020, its total number of clients reached 113,146, and annual client transaction value reached RMB 68.2 billion (or USD 9.7bn) in FY2020, ie 23% YoY increase.
- Hywin operates 167 wealth service centers across 84 cities in China.
- Hywin’s Hong Kong business acts as a gateway to serve existing clients’ offshore needs, and also for reaching out to overseas HNWIs.
Diversified product offerings
- For its wealth management products, Hywin sources from leading brand names such as Hony Capital, China International Capital Corporation, CDH Investments, China Renaissance, Hillhouse Capital, GGV Capital, and more.
- Hywin offers onshore funds as well as offshore private funds to professional investors. In the offshore space Hywin also offers discretionary mandates to (U)HNW clients based on EAM (external asset manager) model, with global custody and execution. In 2019, Hywin commenced a global collaboration with VP Bank AG in this area.
Lastly, Hywin believes that there are tremendous opportunities in China’s wealth management market.
- China is the second largest wealth market in the world, and there is over USD 34 trillion in total addressable wealth
- Clients are increasingly embracing the independent wealth management model, which will continue to grow fast at a 15.1% CAGR going forward. More HNW clients are moving to independent wealth managers because of their product diversity, advisory quality, and objectivity.
- Hywin believes that it is well-positioned to capture these opportunities, and transform Chinese HNW clients’ wealth growth into superior financial performance.