MALLESONS STEPHEN Jaques and several other international and Chinese firms advised on the HK$4.1 billion ($600 million) IPO and listing on the Hong Kong Stock Exchange of Chinese coke and coal producer Hidili Industry International.
The offer included an international placement under regulation S and rule 144 of the US Securities Act, and both the Hong Kong and international placements were significantly oversubscribed.
Mallesons advised Hidili on the Hong Kong law aspects of the deal, assisted PRC counsel on the groups’ restructuring prior to the IPO, and helped to structure a pre-IPO investment via convertible notes by Barings Private Equity Asia.
“After a period of global market uncertainty, we are seeing Chinese issuers returning to tap the Hong Kong equity market,” said Conrad Chan, Mallesons lead partner on the deal.
The firm said the offer was supported by four “cornerstone investors” that bought shares at an aggregate value of US$80 million ($91 million). These included a company of which Dr Lee Shau Kee is a substantial shareholder, a company owned by the chairman of Bank of East Asia, Sir David Li Kwok-po, chairman and chief executive officer of Chinese Estates Holding Ltd, Joseph Lau Luen-hung and a company which is a trustee for the benefit of Kuok Hock Nien and all members of the Kuok group companies.
The other firms that acted for the issuer were Jones Day on US law aspects, Jingtian & Gongcheng on PRC law and Conyers Dill & Pearman on Cayman Islands law.
For the joint sponsors and underwriters, Paul, Hastings, Janofsky & Walker advised on Hong Kong and US law and Commerce & Finance Law Offices on the PRC law aspects.
“Our work on this highly-anticipated IPO reinforces our reputation for being one of the leading equity capital markets practices in Hong Kong,” said Mallesons’ China managing partner, Larry Kwok.
“Our lawyers have advised on approximately 100 IPOs on the Hong Kong Stock Exchange, many of which involve interests and assets located in the PRC.”
Hidili’s IPO was oversubscribed 670 times in Hong Kong. The net proceeds of the raising will be used to expand its production capacity and aquire more coal mines.
Mallesons said they had also recently acted as Hong Kong counsel to Sichuan Xinhua Winshare Chainstore on its HK$2.1 billion ($306 million) global offering and listing on the main board of the Hong Kong Stock Exchange.