LAWFUEL – The Net’s Leading Law News Network – Mallesons Stephen Jaques has advised on two major Hong Kong initial public offerings (IPOs) – Kingboard Laminates Holdings Limited and Zhaojin Mining Industry Company Limited – which raised a combined US$1.03 billion in December 2006.
The HK$5.8 billion (US$744 million) IPO of Kingboard Laminates was the culmination of parent company Kingboard Chemical’s plan for the spin-off and separate listing of its laminates division. Mallesons advised Kingboard Chemical, one of the world’s largest manufacturers of printed circuit boards, on the Hong Kong law aspects of the transaction. The Mallesons team applied their commercial understanding of their client’s business and industry, gained from advising Kingboard Chemical on previous corporate transactions, to achieve a successful restructuring and capital raising.
On the Zhaojin Mining IPO, Mallesons acted as Hong Kong counsel to the underwriters UBS and Cazenove Asia. Zhaojin Mining raised approximately HK$2.2 billion (US$282 million) through its global offering and listing on the Hong Kong Stock Exchange – the largest offering to date by a Chinese gold mining company.
Kingboard Laminates made its trading debut on the Hong Kong Stock Exchange on 7 December, followed by Zhaojin Mining on 8 December. On a separate but concurrent transaction, Mallesons’ lawyers in Hong Kong also advised China’s largest bathroom appliance manufacturer AUPU Group, which listed on the same day as Zhaojin Mining, on its HK$251 million (US$32 million) IPO.
All three offerings attracted strong investor interest and were priced at the top of their indicative ranges. The retail tranche of Zhaojin Mining’s offering was reportedly more than 500 times oversubscribed while Kingboard Laminates saw the retail portion of its IPO oversubscribed by more than 140 times.
Larry Kwok, Managing Partner, China was the lead partner on the Kingboard Laminates and Zhaojin Mining IPOs. Larry Kwok said: “To have been involved in three Hong Kong IPOs which came to the market in the space of two days, two of them being the largest for the last quarter of 2006, is the perfect way to cap off an excellent year.
Managing the close timing of the offerings required a tremendous amount of coordination and effort. Our recent work showcases our ability to form effective and well-resourced teams to ensure efficient deal execution.
We continue to have one of the most active corporate finance practices in Hong Kong, with strong experience in representing issuers and underwriters. We look forward to helping our clients bring many more exciting deals to the market in 2007.”
In leading the Kingboard Laminates and Zhaojin Mining transactions, Larry Kwok was supported by fellow partner Dieter Yih and lawyers Sindy Chan, Jeanny Chang, Joyce Li, Jonathan Hsui, Tracy Lam, Sandy Au, King Lai and Esther Wong. Conrad Chan was lead partner on the AUPU Group listing, supported by lawyers Mandy Yim, Veronica Chow, Gigi Wong and Edith Leung.