Davis Polk & Wardwell is advising Chinese state-owned brokerage China Galaxy Securities Co. on a planned $1.5 billion Hong Kong initial public offering.
According to company filings, 90 percent of the offering will be allocated to institutional investors, with the remainder offered to retail investors. Proceeds of the IPO will be used to expand business including capital investments, margin financing, and securities lending.
Galaxy Securities’ IPO will be one of the largest in Hong Kong this year. It is third such listing in Hong Kong by a Chinese brokerage, following China Citic Securities Co., which raised $1.7 billion in 2011, and Haitong Securities Co., which raised $1.7 billion last year.
Galaxy Securities is the investment arm of Central Huijin Investment Co., which holds a 70 percent stake in the company.
Davis Polk & Wardwell Hong Kong partners Bonnie Chan and Antony Dapiran and Beijing partner Li He are advising the issuer. Beijing’s Grandall Law Firm is also acting for Galaxy Securities on Chinese law.
Clifford Chance is representing the underwriters, which include Goldman Sachs Group Inc. and JP Morgan Chase & Co., BoCom International, Merrill Lynch and Co. Inc., Credit Suisse Group A.G., Haitong Securities International, the Hongkong and Shanghai Banking Corp. Ltd., Standard Chartered Bank and UBS A.G.
Email: jseah@alm.com .