CORRECTION: 9/12/2011, 3.40 p.m. An earlier version of this story wrongly described CITIC Securities as a subsidiary of CITIC Group. It also wrongly stated Baker & McKenzie had advised CITIC Securities in relation to Metallurgical Corp. of China Ltd.’s IPO. The second and fourth paragraphs have been amended. We regret the errors.
UPDATE: 9/7/2011, 4.36 p.m. Information about Baker & McKenzie’s lead partners on the deal has been added to the fourth paragraph of this story. The sixth paragraph has also been updated to reflect the change.
UPDATE: 10/7/2011, 11.27 a.m. Information about the underwriters’ counsel has been added to the final paragraph of this story.
CITIC Securities, whose largest shareholder is state-owned investment company CITIC Group, is already listed on the Shanghai Stock Exchange. It received regulatory approval from China’s financial regulator, the China Securities Regulatory Commission, for a Hong Kong listing on September 1.
According to its prospectus, CITIC Securities is planning to issue up to 10 percent of its stock in Hong Kong. The proceeds of the offering will be used for expansion of the firm’s cross-border operations.
Baker & McKenzie, Latham & Watkins and Jiayuan are listed in the prospectus as respectively advising CITIC Securities on Hong Kong, U.S., and Chinese law. Baker & McKenzie’s team was led by partners Pui Hong Chik in Beijing and Rossana Chu in Hong Kong. The firm previously represented CITIC Securities as placing agent in a $74 million share placement by China Aerospace International Holdings Ltd. last year.
Beijing-based Jiayuan was counsel to CITIC Securities in talks over a proposed $1 billion investment in The Bear Stearns Cos. in 2008. The deal was scuttled as the financial crisis worsened, and Bear Stearns was ultimately sold to JPMorgan Chase & Co.
Latham & Watkins and Jiayuan declined to comment on the transaction.
The underwriters of CITIC Securities’ IPO include Citic Securities International, CCB International and ICBC International. Freshfields Bruckhaus Deringer was the underwriters’ legal advisor. Hong Kong partners Teresa Ko and Calvin Lai, and Beijing partner Richard Wang advised. King & Wood provided Chinese counsel to the underwriters.