(Bloomberg) -- Welkin China Private Equity Ltd., an investment company focused on buying stakes in private Chinese companies, is planning to seek as much as $300 million in a London initial public offering. 

The newly established vehicle aims to list on the London Stock Exchange’s premium segment and expects to publish its prospectus in the coming days, it said in a statement Monday, confirming an earlier Bloomberg News report. It will be managed by Welkin Capital Management (Asia) Ltd., a growth investment firm started by financier Johnny Kong.

Welkin Capital’s portfolio companies have included Juneyao Airlines Co., a Shanghai-based carrier which listed in 2015 and now has a market value of about $4.8 billion, as well as Tuhu, a Chinese online car-services platform backed by Tencent Holdings Ltd. that’s exploring an IPO. 

It has also invested in athletic gear maker East Asia Sport, skincare brand Shawya Biotechnology, bilingual school operator Aidi Education and craft beer brand Great Leap Brewing, according to Welkin Capital’s website. The firm, which oversees about $500 million of assets, has made a compound annualized return of 28% through the end of last year.

Welkin China Private Equity will seek out new growth investments using the IPO proceeds, as well as tactical deals where it can take advantage of market dislocations and exit faster, it said in Monday’s filing. For the first 12 to 18 months, the company will mainly look for secondary opportunities to invest in third-party private equity funds.

It also plans to acquire seed assets including a $15 million interest in Welkin Capital’s existing private fund, as well as $15 million worth of stakes in 10 of its portfolio companies, according to the statement. The company is targeting an annualized total return of at least 15% over the long term, it said. 

London IPOs have raised just $1.6 billion this year, down 91% from the same period in 2021, according to data compiled by Bloomberg. The potential listing comes at a time when growth plays have fallen out of favor with risk-averse investors and Sino-US tensions are making it harder for Chinese companies to maintain listings in New York.

Deutsche Bank AG is leading Welkin’s offering as sole sponsor and global coordinator. CLSA Ltd., FinnCap Ltd. and Huatai Securities Co. are also working on the deal as joint bookrunners. 

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