Qatar Investment Authority Acquires 4.26% Stake in Kingdee with $200M Investment

Kingdee International Software Group Co., Ltd. announced on December 10 that it had inked a final agreement with the Qatar Investment Authority (QIA). As part of the deal, QIA will make a strategic investment of approximately $200 million, subscribing to ordinary shares issued by Kingdee. The investment will result in QIA holding about 4.26% of Kingdee’s total ordinary shares, subject to a lock-up period of 180 days.

Post-transaction, Xu Shaochun, the Chairman of the Board and CEO of Kingdee, will retain a 19.37% stake in the company. Expressing his satisfaction with the deal, Xu Shaochun stated, “We are thrilled to collaborate with QIA. Their strategic investment underscores Kingdee’s leadership in the enterprise digital management industry and will bolster our international growth strategy.”

Mohammed Al-Hardan, Head of Technology, Media and Telecommunications (TMT) Investment at QIA, echoed similar sentiments. He said, “QIA is dedicated to investing in innovative tech firms globally. We are optimistic about the long-term growth potential of the Asian software industry and acknowledge Kingdee’s pivotal role in driving the cloud transformation of Chinese businesses. We are delighted to incorporate Kingdee into our expanding Asian TMT investment portfolio.”

QIA’s investment, made at a price of HKD 10.10 per share, represents about 4.45% of Kingdee’s existing issued share capital. Following the completion of the deal, this will equate to roughly 4.26% of the company’s enlarged issued share capital. The agreed subscription price per share, set at HKD 10.10, was determined on a fair basis, reflecting a 2.70% discount on the closing price per share on the last trading day before the subscription agreement was signed, and a 3% discount on the average closing price in the five consecutive trading days preceding the agreement.

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