China South City Holdings, a developer and operator of large-scale, integrated logistics and trade centres in the PRC, has commenced trading on the HKSE and both Baker & McKenzie and Morrison & Foerster were involved as legal advisors on this US$404m IPO.

Both Baker & McKenzie and Morrison & Foerster have recently advised on the US$1.13bn Sinopharm IPO. Morrison & Foerster was also involved in China Zhongwang’s US$1.2bn global offering earlier this year. “These listings highlight the current revival of the local markets,” said Ven Tan, partner of Morrison & Foerster and lead partner on the China South City Holdings IPO. “Generally, market sentiments have improved significantly since 2008 and the [Hang Seng Index] is back at the same level as it was prior to the financial crisis. As a result, we are seeing higher [price-to-earning] valuations in the recent IPOs, which in turn have renewed interest among PRC companies seeking to raise capital overseas.”

China South City Holdings will use the net proceeds from the IPO to fund the further expansion of China South City Shenzhen and the development of similar trade and industrial centres in other Chinese cities such as Nanchang and Nanning.

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