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China/Hong Kong – Baker & McKenzie Advises CITIC Securities on its Global Offering.

6 October, 2011

 

Baker & McKenzie securities team recently acted as Hong Kong law counsel to CITIC Securities Company Limited (“CITIC Securities”), the leading full-service investment bank in China and China’s largest publicly traded brokerage, on its around HK$13.2 billion (US$1.7 billion) global offering.  The H shares of CITIC Securities commenced trading on The Stock Exchange of Hong Kong Limited on 6 October 2011.  Net proceeds from the global share offering will be used to establish or acquire overseas research platforms, sale and trading networks, develop flow-based businesses (including prime services, structured products, fixed income, foreign exchange and commodoties trading) as well as for working capital and general corporate purposes. This deal is the third biggest Hong Kong IPO this year.

 

The Baker & McKenzie team was led by securities partners, PH Chik, based in Beijing and Rossana Chu, based in Hong Kong.  The team had lead responsibility for legal documentation, drafting of the various Hong Kong sections of the prospectus, corporate and regulatory issues and general transaction management.

 

Established in 1995, CITIC Securities was the first China-based investment bank to be listed on the Shanghai Stock Exchange in 2003.  Its largest shareholder, CITIC Group, is one of the largest state-owned conglomerates and operates in a wide range of industry sectors including, finance, real estate, infrastructure, construction, energy and resources, manufacturing, information technology, trading and consumer.

 

CITIC Securities Corporate Finance (HK) Limited acted as the sole global coordinator and CITIC Securities Corporate Finance (HK) Limited, CCB International Capital Limited and ICBC International Capital Limited acted as the joint sponsors of the global offering.  CITIC Securities Corporate Finance (HK) Limited, ICBC International Capital Limited, CCB International Capital Limited, BOCI Asia Limited, ABCI Securities Company Limited and BOCOM International Securities Limited acted as the joint bookrunners.  Merrill Lynch International, CLSA Limited, Credit Agricole Corporate and Investment Bank, Morgan Stanley & Co. International plc and The HongKong and Shanghai Banking Corporation Limited acted as joint international coordinators of the global offering.

 

The following cornerstone investors have subscribed H-shares for an aggregate amount of US$850 million as part of the international offering: Waddell & Reed, Kuwait Investment Authority, Temasek Holdings, Banco BTG Pactual S.A., Fubon Life Insurance and OCH Ziff.

 

Other legal advisors acted on the deal include:

Latham & Watkins (Legal advisor to the Company on US law)

Jiayuan Law Firm (Legal advisor to the Company on PRC law)

Freshfields (Legal advisor to the underwriters on HK and US law)

King & Wood (Legal advisor to the underwriters on PRC law)

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