What was unimaginable only six months ago at the height of the financial crisis has quickly become a reality. In what has been by far the busiest week on Hong Kong’s equity capital markets for some time, no less than four companies took the plunge by launching global offerings which are looking between them to raise in excess of US$2bn. Full details of the IPO, and the their advisors are set out in the following tables (see below).
Amy Lo (pictured), who was Clifford Chance’s lead partner on all four of the deals, said that this last week proves that the Hong Kong IPO is back in fashion, expecting plenty more to come in the weeks ahead.
"From a market perspective… four Hong Kong IPOs in a week was unthinkable just 12 months ago,” she said. “To see four such different offerings open successfully will reassure those considering investments in Asia that the IPO is back as a viable exit option."
Evidence of this may be found in another IPO that will soon be hitting the market, Power Long Real Estate Holdings (PL), which plans to raise US$500m from its IPO later this week. The offering, which was first signaled in June last year only to be scuttled by worsening economic conditions, will allow the company to increase its land reserves, repay bank loans, fund the development of existing projects and supplement general working capital. PL turned to Sidley Austin, Jingtian & Gongcheng and Maples and Calder for its legal work while the deal’s underwriters Goldman Sachs, ICBC and Macquarie Capital used Freshfields and Commerce & Finance.
A busy week: a snapshot of this weeks deals on Hong Kong’s capital markets
China Resources Cement Holdings (CRC) IPO (US$800m)
Wynn Macau IPO (WM) (US$1.6bn)
Yingde Gases IPO (YG) (US$450m)
Ausnutria Dairy (AD) IPO (US$200m)
Power Long Real Estate Holdings IPO (PL) (US$500m)
First cab off the rank this week was China Resources Cement Holdings (CRC), one of southern China’s largest producers of cement and concrete. Through its Hong Kong listing the company hopes to raise around US $800m. Clifford Chance acted for the underwriters to the offering — Credit Suisse and Morgan Stanley — while for PRC counsel the underwriters turned to King & Wood. CRC used Freshfields for Hong Kong, US Federal Law and NY State law advice while local PRC firm Concord & Partners was used for PRC advice. Maples and Calder was called on to provide Cayman law advice.
Wynn Macau (WM) is seeking to raise US$1.6bn to fund the development of yet another Las Vegas-style luxury integrated resort in Macau. On this occasion, WM turned to Skadden for Hong Kong and US law advice and Maples and Calder and Alexandre Corriere de Silva for counsel on the laws of Cayman and Macau respectively. The deal’s underwriters – JP Morgan, Morgan Stanley and UBS –were advised by Clifford Chance and Macau local firm Henrique Saldhana.
China-based industrial gas provider Yingde will be looking for its offering to raise US $450m. Yingde used Frehsfields for Hong Kong and US law advice while for PRC and BVI counsel it turned to Jun He and Conyers Dill & Pearman, respectively. Clifford Chance was again called on by Goldman Sachs and Morgan Stanley for advice while for PRC laws they engaged Commerce & Finance.
Ausnutria Dairy, a distributor of pediatric milk formula in the PRC, hopes to raise US$200m through its offering. Mallesons Stephen Jaques and Jingtian & Gongcheng were retained as advisors on Australian/Hong Kong and PRC, respectively, while the issue’s underwriters Macquarie Capital and the Bank of China International used Clifford Chance and Commerce & Finance.
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