China-focused Welkin plans $300 million London IPO

(Reuters) -China-focused Welkin China Private Equity expects to raise up to $300 million through an initial public offering (IPO) and list on the London Stock Exchange, it said on Monday.

The investment vehicle's statement said it would be the first London-listed fund dedicated to investing in unquoted Chinese companies.

The planned IPO comes despite a dearth of flotations this year owing to volatile market conditions since Russia's invasion of Ukraine and against a backdrop of rising geopolitical tensions between the West and China.

Welkin China said it expected to publish more details in a prospectus for the IPO "in the coming days".

The listing will give "public investors diversified access to private market investments in China through funds managed by Welkin and selected external managers", said Welkin China Chairman Ivan Chu.

Welkin China said the vehicle would be targeting returns in annualised net asset value of at least 15% over the long term.

The company will be managed by Welkin Capital Management (Asia) Ltd, which was founded in 2009 to focus on investments in mid-sized Chinese companies.

Welkin Capital's investments include private airline Juneyao Airlines, athletic clothing brand East Asia Sport and school operator Aidi Education, the company's website says.

(Reporting by Muhammed Husain in Bengaluru and Iain Withers in LondonEditing by Rashmi Aich and David Goodman)