LAWFUEL – The Law Newswire – Lovells has again advised joint sponsors Morgan Stanley and UBS on a major Hong Kong initial public offering, for China Molybdenum, raising US$1.05 billion, the third largest IPO in Hong Kong this year.
The offer comprised a Hong Kong public offer and international placing of 1.08 billion new shares, which raised US$950 million. A further US$95 million was raised on the exercise of the over‑allotment option in respect of 108 million shares. The Hong Kong public offer was almost 400 times over‑subscribed.
The company, known as China Moly or CMOC, operates one of the largest molybdenum mines in the world, which is estimated to have 498,000 tonnes of molybdenum reserves and 506,000 tonnes of tungsten reserves. Both molybdenum and tungsten are used as alloys to harden steel and are in strong demand by China’s rapidly growing stainless steel industry in particular.
The Lovells team was led by Hong Kong-based partner Jamie Barr, and included consultant Terence Lau and members of Lovells’ US securities team, including partner Katherine Mulhern and Senior Associate Thomas Tarala. The team were also supported by Colin Law, now of O’Melveny & Myers.
Commenting on the deal, Head of Asia Corporate Practice Jamie Barr said:
“I am delighted that we have been able to work with Morgan Stanley and UBS on this second highly significant IPO to have listed within a week, this time in the mining sector.”
The Lovells team also advised Morgan Stanley and UBS as joint sponsors on the US$1.9 billion IPO of Country Garden last week, the largest ever by a Chinese real estate developer and one of the most popular retail offerings in Hong Kong on record.