KWM Advises On Justbon’s Spin-off And Hong Kong Listing.

Legal News & Analysis - Asia Pacific - Hong Kong - Capital Market

23 October, 2019

 

King & Wood Mallesons (KWM) advised Huatai Financial Holdings (Hong Kong) Limited and ABCI Capital Limited as the joint sponsors on the initial public offering (IPO) and listing of the H-shares of Sichuan Languang Justbon Group Co., Ltd. (Justbon, SEHK Stock Code: 2606) on the Main Board of The Stock Exchange of Hong Kong Limited (SEHK). The listing involved spinning-off Justbon from the A-share listed Sichuan Languang Development Co., Ltd.

 

Listed on 18 October 2019, the global offering comprised a total of 42,916,200 shares. Priced at HK$37 per share, the listing raised a gross amount of HK$1.4795 billion (before exercise of the over-allotment option). This marks the largest Hong Kong* IPO in terms of value of funds raised for this industry sector in 2019 to date, with around 53 times over-subscription in the Hong Kong public offering. It also has the largest number of cornerstone investors for a Hong Kong IPO in this industry sector in recent years.

 

Established in 2000, Justbon provides professional consultation services in property management and the business operations of residential communities for residential areas, shopping centres, industrial parks, and projects related to the hotel industry. Upon completion, Justbon marks the first property management service provider in Southwest China to successfully list on the Main Board of the SEHK. It intends to move into a new model focusing on the modern service industry as part of its strategy to position itself as a leading residential community and commercial property service providers in China.

 

In this transaction, the seamless KWM Beijing, Chengdu and Hong Kong team acted for the joint sponsors in respect of PRC, Hong Kong and U.S. laws.

 

Partners Tang LiziLiu HuLiu Feng and Guo Liang advised on the PRC law. Partner Gary Lock,counsel Ruth Lau and associate Sammy Ng acted on the Hong Kong legal aspects. The US legal aspects were led by Liu Jia with support from Angela Chan and Angela Wang.