Shares in CITIC Securities commenced trading in Hong Kong on 6 October, following the company’s Hong Kong initial public offering . CITIC Securities was established in 1995 and was the first Chinese investment bank to list in Shanghai, in 2003.
The Hong Kong IPO raised HK$13.2 billion (US$1.7 billion) through the sale of 995,300,000 H shares, including an international offering (144A/Reg S) of 945,535,000 shares and a Hong Kong offering of 49,765,000 shares. Net proceeds from the Iisting will be used to establish or acquire overseas research platforms, and sales and trading networks; develop flow-based businesses (including structured products, fixed income, foreign exchange and commodities trading); and for working capital and general corporate purposes.
CITIC Securities’ largest shareholder, CITIC Group, is one of China’s largest state-owned enterprises. In addition to finance, it operates in a range of industry sectors including construction, energy and resources, manufacturing and information technology.
Baker & McKenzie acted as Hong Kong counsel to CITIC Securities. The Baker & McKenzie team was led by securities partners PH Chik in Beijing and Rossana Chu in Hong Kong. The team had lead responsibility for legal documentation, drafting the Hong Kong sections of the prospectus, corporate and regulatory issues, and general transaction management.
Latham & Watkins acted as US counsel to the issuer. The firm’s Hong Kong managing partner, Michael Liu, commented: “This deal is the third largest financial sector listing globally so far this year. CITIC Securities is the first financial institution to give foreign investors direct access to the investment banking industry in China.”
Freshfields Bruckhaus Deringer advised the underwriters. Richard Wang, who led the Freshfields team, was appointed partner at the firm on 1 October.
Jiayuan Law Firm acted as legal adviser to CITIC Securities, and King & Wood acted as legal adviser to the underwriters, on PRC law.