LAWFUEL – Law & Business News Network – Herbert Smith has advised …

LAWFUEL – Law & Business News Network – Herbert Smith has advised Industrial & Commercial Bank of China (ICBC) on its record-breaking US$19.1 billion flotation.

As well as undertaking the world’s biggest IPO, ICBC is also the first company to list simultaneously on the Shanghai and Hong Kong stock exchanges, a move that is expected to create a precedent for listings of other premium PRC companies.

The ICBC IPO has also set a number of other records in Hong Kong, including the greatest number of applications from retail investors.

The deal priced at the top of its range and was more than 70 times oversubscribed in the Hong Kong retail tranche and 30 times oversubscribed in the global institutional placement tranche. Previously, the largest IPO was the US$18.4 billion initial public offering of NTT DoCoMo eight years ago.

ICBC is the largest commercial bank in the PRC when measured by assets, loans and deposits.

The Herbert Smith corporate team was led by Beijing partner Michael Fosh with participation from fellow partners Tommy Tong, Ashley Alder and Jeremy Xiao. They were assisted by Jason Sung, Katrina Shi and Huang Lixin. The banking team was led by Paul Lee with associates Boon Teck Yeo and Margie Chan.

Michael Fosh commented:

“We are very pleased to have advised ICBC on this record-breaking IPO. It is a clear demonstration of how the Chinese financial sector is now the focus of increased interest from both local and international investors. This large and complex deal contained a number of unique challenges and further reinforces the strength of our capital markets team and our leading position in Mainland China transactions.”

China International Capital, Credit Suisse, Deutsche Bank, ICEA Holdings, and Merrill Lynch were the international arrangers, while the bookrunners for the Shanghai listing were China International Capital Corp, Citic Securities, Shenyin & Wanguo Securities and Guotai Junan Securities.

King & Wood advised ICBC on PRC law, while Davis Polk provided US law advice.

Shearman & Sterling, Freshfields Bruckhaus Deringer and Haiwen & Partners advised the underwriters.

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