Summary of Proposed Investment
Project Number
11395
Company Name
Global Infotech Co.,LTD
Date SPI Disclosed
May 16, 2002
Country
China
Industry
Telecommunications and Technology
Projected Board Date
Jun 19, 2002
Status
Completed
Sector
Content (B2C Companies)
Department
WBG Digital and AI
Environmental Category
C - No Impact
Previous Events
Approved : Nov 21, 2002
Signed : May 19, 2003
Invested : Jul 8, 2003
Project Description
GIT has two business lines, GIT Technology, which provides systems integration services and value added solutions, and GIT Software, which produces proprietary software for customers in the banking and insurance industries. GIT was founded in July 1997 by Mr. Yu. GIT is seeking to raise up to US$14 million to finance i) the expansion and development of GIT’s software product offerings, ii) select acquisitions, iii) construct a software development center and iv) working capital for market expansion of its hardware and software businesses (the project). The project would have significant development impact by supporting a group of local entrepreneurs who have built a successful IT services firm through organic growth and who are now attempting to take the company to the next level by bringing in institutional investors to supply growth capital, market credibility, and better corporate governance. In addition, as GIT grows, it will continue to train skilled technology workers in China and expose them to international best practices.
IFC is expected to play a significant role in structuring the deal so as to enable international investors to invest in a medium sized Chinese technology company. The GIT management team is focused on an eventual international listing for the company''s shares given the greater transparency, liquidity and credibility that an international listing affords. In addition to developing the investment structure, IFC''s presence will provide comfort to foreign investors in this newly evolving sector in China. Investors are wary not only of country risk but also of intellectual property rights in China. Despite the exceptional promise of the company, GIT has found it difficult to raise such a large round of capital in the current investment environment. An IFC decision to invest in the company would help GIT mobilize the addition funds needed to complete the financing plan.
IFC is expected to play a significant role in structuring the deal so as to enable international investors to invest in a medium sized Chinese technology company. The GIT management team is focused on an eventual international listing for the company''s shares given the greater transparency, liquidity and credibility that an international listing affords. In addition to developing the investment structure, IFC''s presence will provide comfort to foreign investors in this newly evolving sector in China. Investors are wary not only of country risk but also of intellectual property rights in China. Despite the exceptional promise of the company, GIT has found it difficult to raise such a large round of capital in the current investment environment. An IFC decision to invest in the company would help GIT mobilize the addition funds needed to complete the financing plan.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Great Infotech Group (GIT)
8th Floor East Gate Plaza No.9 DongZhong Street
Dong Cheng District, Beijing 100027
People''s Republic of China
Phone: (8610) 6418-1730
Fax: (8610) 6418-1713
8th Floor East Gate Plaza No.9 DongZhong Street
Dong Cheng District, Beijing 100027
People''s Republic of China
Phone: (8610) 6418-1730
Fax: (8610) 6418-1713