Opportunity
With so much IT work going to India and China, contractors have an opportunity to cash in on this bonanza.
A new company, called SovGEM, will be coming to the AIM market this month which specialises in investing in pre-IPO Chinese companies who want to float on foreign markets.
It will be selecting good Chinese companies to invest in. These will be sourced and vetted by a leading Chinese investment bank called Benchmark.
There are more than 70 Chinese companies on the US market at the moment and there are more than 1,000 Chinese companies trying to get to market. Many are being wooed by foreign exchanges.
Difficult
It is often difficult for private investors to get into good companies at the pre-IPO fund raising stage. Companies often let investors in much more cheaply at this stage so that they can raise funds both to grow the company before an IPO and to pay for the IPO when it comes.
Usually the juicy pre-IPO stage funding is only offered to institutions.
However, individuals will be able to invest in SovGEM, which will in turn invest in these pre-IPO Chinese companies.
SovGEM will be coming to market sometime in November. The brokers are Teather & Greenwood.
They are looking to raise $5 million valuing the company at $20 million. The funds will be used for investing in these pre-IPO companies.
