ALLEN & OVERY advised Credit Suisse First Boston (Hong Kong) Limited (CSFB) on the largest initial public offering (IPO) in Hong Kong so far this year.
CSFB’s offering of 2.97 billion H shares of Shanghai Electric Group Company Limited was priced at $0.28 (HK$1.70) a share and raised approximately $831 million (HK$5.05 billion). The listing occurred in Hong Kong last month.
Shanghai Electric is one of China’s leading industrial conglomerates engaged in the design, manufacture, sale and service of a wide range of products. The H shares, listed on the main board of the Hong Kong Stock Exchange, were sold in a public offering in Hong Kong, a public offering without listing in Japan and an international placing to qualified institutional buyers in the US pursuant to Rule 144a and to other institutional investors outside the US pursuant to Regulation S.
Partner Stanley Chow led the Allen & Overy team, assisted by senior associate Jacqueline Lim and associates Anthony Poon, Reina Lau and Vivienne Zang. Partner David Johnson and senior associate Jacob Shek led the firm’s advice on US law aspects. Chow said the firm’s Hong Kong equity capital markets practice had continued to go from strength to strength, and the work on thistransaction had confirmed the ability of the firm’s combined Hong Kong and US law service, he said.
“I think that our track record speaks for itself and shows the quality and complexity of the deals we have been trusted to advise on,” Chow said.
“As to the HK IPO market generally, worldwide markets have been adversely affected by the mixed or negative economic data coming out of the US as well as high oil prices.” He said Hong Kong’s stock market had not been immune to those forces and CSFB had done well to float Shanghai Electric under such market conditions.