CITIC Dameng Holdings, China’s largest producer of manganese, launched a US$266 million initial public offering on the Hong Kong Stock Exchange in November. CITIC Dameng is a spin-off from CITIC Resources Holdings, an energy and metals producer listed in Hong Kong, which is controlled by the CITIC Group.
The company initially sold 750 million shares at HK$2.75 apiece. This was at the top end of its indicative price range of between HK$2.10 and HK$2.75. CITIC Dameng will use the proceeds from the IPO to fund development and construction projects, acquire mines and associated facilities, pay back bank loans and replenish working capital.
Skadden Arps Slate Meagher & Flom were counsel to the issuer regarding Hong Kong and US law. Dominic Tsun and Alec Tracy were the partners involved.
Jingtian & Gongcheng advised CITIC Dameng as to PRC law. Conyers Dill & Pearman advised on Bermuda law, while Cabinet Delta advised on certain matters relating to CITIC Dameng’s operations in Gabon.
Freshfields Bruckhaus Deringer advised the lead underwriters, comprising CITIC Securities, Bank of America Merrill Lynch and UBS. The Freshfields team was led by the firm’s Hong Kong managing partner and global capital markets co-head, Kay Ian Ng, and US securities partner Calvin Lai. Commerce & Finance Law Offices advised the underwriters regarding PRC law.
