Latest major IPO keeps HK cap markets teams busy

by Sol Dolor12 May 2017
Herbert Smith Freehills has advised the joint sponsors and underwriters of the IPO and spin-off of China Everbright Greentech on the Stock Exchange of Hong Kong earlier this week.

The Big Six firm fielded a team from Singapore and Hong Kong to advise joint sponsors China International Capital Corporation Hong Kong Securities and CEB International Capital Corporation. It also acted for the underwriters of the HK$2.93bn listing, which were China International Capital Corporation Hong Kong Securities, CEB International Capital Corporation, China Everbright Securities (HK), CCB International Capital, and China Merchants Securities (HK) Co.

Partners Matt Emsley, from Hong Kong, and Siddhartha Sivaramakrishnan, from Singapore, led the team. They were assisted by senior associate Jackie Chen and associates Jeremy Shen, George Wu, Lawrence Cheng, Qingqing Bu, and Ronald Hui.

China Everbright Greentech is one of the largest companies specialising in biomass and hazardous waste treatment in China. Its facilities ­– including those in operation, under construction, and at the planning stage – have the fourth largest total biomass power-generation designed capacity and the third largest total hazardous-waste disposal designed capacity in the country.

The company spun off from China Everbright International Limited (CEIL), one of the largest integrated environmental service providers in China. Qualifying shareholders of CEIL were given a preferential offering of China Everbright Greentech shares under the IPO.

Last year, Hong Kong retained its crown as the top stock exchange for IPOs around the world, despite a 26% drop in total funds raised. In 2016, 120 companies listed on the exchange, raising a total of HK$194.8bn, down from the 124 IPOs and the HK$263.1bn raised in 2015.

Earlier this year, PwC predicted that the Stock Exchange of Hong Kong will remain the top bourse this year with 130 IPOs raising HK$220bn.


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