(EnergyAsia, March 31, Monday) — International law firm Herbert Smith said it advised Credit Suisse and Morgan Stanley as joint global coordinators on the HK$3.2 billion Hong Kong IPO and Rule 144A / Regulation S global offering of Honghua Group.
Honghua Group, the second-largest onshore oil rig manufacturer in the world and the largest in China, sold 25% of its enlarged share capital, or 833.36 million shares. The 70% institutional tranche was more than 11 times covered, while the retail tranche attracted about 28 times the number of shares on offer.
This triggered a partial clawback that boosted the size of the retail tranche from 10% to 30% of the total. Trading began on March 7.
Herbert Smith said it advised on both the Hong Kong and US law aspects of the IPO.
The team was led by Shanghai-based partner Gary Lock and Hong Kong-based US Securities partner Kevin Roy. They were assisted by senior associate Jeffrey Yang, and associates Jonathan Barkey, Su-Li Chan, and Vivian Wang.
Mr Lock said: “This latest transaction for Credit Suisse and Morgan Stanley is a further demonstration of the value we deliver to the major investment banks. Our China expertise combined with a leading Hong Kong team is an attractive offering for our clients.”
Mr Roy said: “We are very pleased to have represented Credit Suisse and Morgan Stanley and brought this transaction to a successful close. This is the latest in a number of successful deals we have worked on for both banks. Our reputation as one of the leading practices in the China-Hong Kong market continues to grow.”
Honghua Group was advised by Arculli Fong & Ng on matters of Hong Kong law, Latham & Watkins LLP on matters of US law, King & Wood on matters of PRC law, and Appleby on matters of Cayman Islands law.
Herbert Smith operates a leading China practice from its well-established presence in Beijing, Shanghai and Hong Kong. The firm has one of the leading equity capital markets practices in Asia.