Hong Kong – LAWFUEL – The Law News Network – Global law firm Clifford Chance has advised HSBC Bank plc (HSBC) as bookrunner and joint lead manager on the US$40 million offering of global depositary receipts (GDRs) by Electrosteel Castings Ltd (ECL) on the Professional Securities Market (PSM), the London Stock Exchange’s market for wholesale securities. This is the first issue of GDRs on the PSM, and the issuer, a leading Indian manufacturer, is the first new issuer to the PSM as well as the first Indian company to join the PSM.
Jermyn Capital Partners plc acted as joint lead manager with HSBC. ECL raised US$35 million, with a US$5 million greenshoe option to be exercised within 30 days, in its offering of GDRs. ECL joins another 64 companies on the PSM, which was launched in July 2005.
The PSM was developed to attract foreign companies to list in London and was designed for issuers whose financial data are reported under their home country’s accounting standards. By joining the PSM, companies can continue to report their results using their home jurisdiction accounting standards, instead of conforming to International Financial Reporting Standards.
The Clifford Chance team representing HSBC was led by partner Stephen Roith, supported by associates Malini Budhwani, Ian Reid and Robert Loynes (all Hong Kong). London-based partner Adrian Cartwright also advised on the deal.
Stephen Roith commented:
“Electrosteel’s offering on the London Stock Exchange’s Professional Securities Market has achieved a number of firsts, and we are delighted to have played a part in this significant development in the launch of a new London based market for international securities offerings.
“The success of this offering demonstrates the need for London to maintain a well-regulated market for securities bought by professional and institutional investors but that are not covered by the new retail investor orientated requirements imposed by the EU Prospectus Directive. We expect the PSM to be very popular for offerings of this kind from Asia.”
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