China Securities Journal, 4/05/18
Shenzhen-based consumer drone maker DJI Technology has reportedly released the results of the first round of competitive bidding in its latest funding round, according to a source close to the matter. DJI reportedly received subscription bids and deposits from nearly 100 investment institutions, and total subscription amounts reached more than 30 times the amount sought under DJI's original investment plan. DJI plans to raise USD 1 bln in new funding to reach a total valuation of more than USD 15 bln.
DJI is reportedly requiring investors to include both equity investment and corporate bond components in their bids, so that investors subscribing for a certain quantity of equity shares must also subscribe for a certain quantity of debt instruments, which are said to be three-year, foreign-issued, zero-coupon bonds. On April 3, DJI reportedly announced that the average debt to equity subscription ratio for USD 500 mln investments (the maximum total subscription amount per institution) was 1.29, meaning that USD 10,000 in shares corresponded to USD 12,900 in bonds.
DJI declined to comment on the matter when contacted by email by online media outlet China Securities Journal.
Editor's Note: For more information on this topic, please see Rumor: Consumer Drone Maker DJI Seeks New Funding at USD 15 Bln Valuation, MD 3/20/18 issue.