Advised by King & Wood Mallesons (KWM), China Industrial Securities International Financial Group Limited (CISI, Stock Code: 8407) launched its initial public offering on the GEM Board of the Hong Kong Stock Exchange (HKSE). The IPO comprised a total of 1 billion shares issued, including 100 million H-shares. Priced at HK$1.33 per share, the IPO raised approximately HK$1.283 billion.
The transaction was the first case in which a Chinese A-share listed securities company had its Hong Kong subsidiary listed on the HKSE, indicating that Chinese brokers are using Hong Kong as a platform to expand their overseas business in a more sophisticated and market-oriented way. Also, as the first red-chip securities company to have its Hong Kong business listed since the launch of Shanghai-Hong Kong Stock Connect, CISI is one of the largest GEM listed companies by market capitalisation.
CISI is a Hong Kong-based wholly-owned subsidiary of Industrial Securities Co., Ltd., a leading Chinese securities company listed on the Shanghai Stock Exchange. It provides integrated services including brokerage, loans and financing, investment banking and asset management.
KWM partner Zhang Yi commented, “Industrial Securities International’s IPO marks the largest GEM IPO in Hong Kong in nearly a decade. We are delighted to have supported Industrial Securities International with integrated PRC and Hong Kong law advice.”
Partner Gary Lock said, “As China further opens up its financial markets, we believe the trend for Chinese securities firms to be listed in Hong Kong is set to continue. With our strong capabilities in the securities and stock markets, combined with our ability to offer one-stop services in PRC, HK and US laws, we are uniquely placed to assist securities firms with their Hong Kong IPOs.”
Acting as PRC and Hong Kong counsels on the deal, KWM was involved in all aspects of CISI’s Hong Kong listing and provided legal advice on and solutions to various issues under PRC and Hong Kong laws. The KWM team was led by partners Zhang Yi, Gary Lock, Jason Qiu and Liu Dongya.