Interview with our member in Shanghai
- Sergio, please briefly describe your company, ARC Capital.
ARC Capital is a boutique investment bank specialized in China.
ARC prides itself as a leader in IPOs, SPAC Advisory and Cross border M&A for emerging growth companies since 2015.
We have a strong network in China with offices in 3 of the main hubs: Shanghai, Shenzhen, and Wuhan. Shanghai is the doorway for most foreigners, Wuhan is the capital of Hubei (300M population) and an incredible amount of expenditure, and Shenzhen is the Silicon Valley of China with most of the technology companies.
- What are the most important trends in the Chinese market?
Despite the new currency regulations, Chinese companies are very active in acquiring companies and assets overseas. Now with COVID-19, China is taking the opportunity to buy ̈cheap ̈ foreign companies. Since 2015 and with the 2025 agenda, China wants to transform its economy by passing from a low labor cost manufacturing focus to a very high-tech and specialized economy owning IP and patents. If we talk about sector, 4 in my opinion are the most active: Energy, Healthcare, Technology, Chemicals.
- Could you please share with us the recent achievements and deals made by ARC Capital?
2019 has been a very good year for us. We became the leading advisory firm in SPACs, complete the 1st Indonesian company doing a straight listing in US and 5 M&A transactions including secondaries, Sell-side, Buy-Side and a JV creation.
- How is the ARC Capital team organized? Could you also tell us how many deals ARC Capital realized last year, and typically which sectors you are most specialized in?
We are a very horizontal organization, very collaborative with each other. We have 2 teams (Capital Markets and M&A) The Capital Markets team is focus mainly on IPO and SPAC advisory. The M&A team focuses on sell-side, buy-side, secondaries, Debt, and capital raise concretely for Energy and Infrastructure projects.
- IPO: We completed 2 transactions last year including (INDO) first Indonesian company to get listed in NYSE. Big achievement for us.
- SPAC: 6 deals completed
- M&A: 5 deals completed: Grab Secondaries, Incomeland capital raise, alodokter capital raise, CTI acquisition Buy Side, Barcelo-LOLC Group (JV for Maldives)
- Tell us about your motivations to join M& Worldwide. And, of course, your expectations about our network.
We have a lot of potential in China, we understand the market, the culture, we have connections and we would like to leverage it and to bring value to the rest of the world.
We have an extensive pipeline in both sell-side and buy-side and we would like to exchange opportunities with the rest of the members. Also, in SPACs, we have a lot of buy-side looking for targets worldwide and its where we bridge our 2 practices at ARC.
To know more about ARC Capital