China Growth Equity Investment Files For $69M IPO

Blank-check company China Growth Equity Investment Ltd. filed to raise up to an estimated $69 million through an initial public offering, selling at least 6 million units for $10 each, as it seeks proceeds to acquire a China-focused business.

Special-purpose acquisition companies, or blank-check companies, are formed as empty shells and raise money through an IPO that is used to finance a business purchase. They generally have two years to acquire a company or are required to return the cash raised during their IPOs.

Among companies going public, many of those that centered on China drew strong investor interest last year. Another China-focused blank-check company, China Resources Development Inc., filed in January to sell up to an estimated $86.25 million worth of units, seeking to acquire a target in a minerals- and mining-related industry.

China Growth Equity, by contrast, isn't targeting a particular industry in its acquisition hunt.

Each unit would consist of one share and a warrant to buy one share for $12. The company granted the deal's underwriters the option to buy up to 900,000 units to cover any overallotments.