Jupai said it will issue to Julius Baer at $1.83 (£1.25, €1.70) per share, 9,591,000 ordinary shares, representing approximately 4.99% of its total outstanding share capital.
“We expect the cooperation between our two companies will further diversify Jupai’s product categories and add more overseas financial products to our existing product lines, allowing us to better meet the demand for overseas asset allocation among Jupai’s clients,” said Jianda Ni, chief executive officer of Jupai.
“In addition, Julius Baer’s valuable experience in the wealth management industry will help to further improve the expertise of Jupai’s financial advisors.”
Boris Collardi, CEO of Julius Baer added that the ownership stake will “strengthen our expertise in China, whilst providing Jupai access to our global investment know-how”.
At the same time, Jupai will issue 2,880,000 ordinary shares to Sina, a Chinese online media company.
Sina’s beneficial ownership in Jupai will be 11.35% immediately upon completion of the transaction, Jupai said in a statement.
The total transaction value of the private placement is approximately $22.9m and is expected to close this month.
Jupai is one of two Chinese wealth managers publicly-listed in the US. the other is Noah Holdings.