Orrick Herrington & Sutcliffe, Beijing-based Zong Heng Law Firm, and offshore firm Conyers Dill & Pearman are advising on China Hongqiao Group’s second attempt at launching its initial public offering (IPO) in Hong Kong.
Back in January, when the aluminum producer shelved a planned $2.2 billion Hong Kong IPO, it cited deteriorating market conditions, particularly rising inflation in Asia and spreading political unrest in the Middle East. This time around, the company is looking to raise $943 million, less than half the amount it sought before.
According to the Wall Street Journal, Hong Kong’s biggest IPO so far this year is that of China Kingstone Mining Holdings Ltd, which raised $167 million through its listing earlier this month.
China Hongqiao is relying on the same firms that it used in January. Orrick is advising the issuer on the Hong Kong and U.S. law aspects of the deal with a team led by Hong Kong partners Edwin Luk and Allen Shyu. Zong Heng is advising on mainland Chinese law, and Conyers Dill is handling Cayman Islands issues.
Clifford Chance is advising the underwriters–J.P. Morgan Securities Ltd., Barclays Bank PLC, ICBC International Holdings Ltd., Bocom International and BNP Paribas SA–on Hong Kong and U.S. law aspects of the transaction. Jingtian & Gongcheng is advising the underwriters on mainland Chinese law.
This is not the first time that some of the firms have worked together on a Hong Kong listing. In August last year, Orrick and Zong Heng, along with Jingtian & Gongcheng, advised on West China Cement’s $179 million IPO in Hong Kong.
Unlike most of China’s major metal producers like Aluminium Corporation of China Ltd. (Chinalco), Shandong-based Hongqiao is a private company launched by entrepreneur Zhang Shiping, the founder of one of China’s largest textile companies. The company has been hoping to use funds raised in an IPO to increase aluminum production.
Email: jseah@alm.com