softbank-fund-sells-57-million-worth-of-digital-china-shares

Softbank fund sells $57 million worth of Digital China shares

As Digital China's share price hovers at record levels, venture capital fund SAIF cashes in, but retains three-quarters of its investment.

A venture capital fund backed by Softbank last night cashed in about a quarter of its investment in Chinese integrated IT services provider and computer distribution company Digital China, raising HK$439.7 million $57 million.

The small placement came on the back of a more than 300% run-up in the company's share price this year, but even so, the sale generated a lot of interest among investors who were keen to buy into analyst projections of a continued pickup in IT spending in China and an increased PC penetration rate in fourth- to sixth-tier cities in particular.

The fact that the seller, SAIF II GP Capital, retains the bulk of its holdings in Hong...

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