30 January 2005 – LAWFUEL – The Law News Network – Simmons & Simmons has acted for ABN AMRO Rothschild as the global coordinator, bookrunner and lead manager on the listing of Dynasty Fine Wines Group Limited on the main board of the Hong Kong Stock Exchange.
The listing, an international offering of 345,000,000 shares (following exercise in full of the over-allotment option), raised HK$776.25 million (approximately US$100 million) at the maximum offer price. The retail offering was 625 times oversubscribed and the share price increased 38.8% on the first day of trading, the best performing first day trading for a new issue since the beginning of 2004. The proceeds will be primarily applied to expand the group’s production capability and sales and distribution network.
Dynasty Fine Wines Group Limited is engaged in the production and sale of grape wine products under its own trademark and the “Dynasty” brand name is one of the most recognised brands in the People’s Republic of China. The group was one of the top three grape wine producers in the PRC in 2003 in terms of annual turnover. Its products can be divided into four main categories: red wines, white wines, sparkling wines and brandy. The annual production capacity of the group as at 30 September 2004 was approximately 30,000 tonnes.
The deal was led by partner Nick Norris, US securities law partner David Neuville and consultant Joseph Lee. They were assisted by corporate associates Steve Kim, Vivi Chow and Winnie Suen.
Nick Norris, head of the China Corporate Group commented:
“The demand for this deal reflects the continuing interest of investors in Chinese consumer products. We are delighted to have worked closely with ABN AMRO Rothschild on such a successful IPO.”