More gold for Midas in Hong Kong secondary listing

More gold for Midas in Hong Kong secondary listing, 麦达斯转赴香港淘金

Midas Holdings, a Chinese aluminium alloy extrusion profile manufacturer with a primary listing on the Singapore Stock Exchange, recently completed a HK$1.2 billion (US$153 million) secondary listing on the main board of the Hong Kong Stock Exchange (HKSE).

Founded in 2000, Midas manufactures aluminium alloy extrusion products which are used in the transport and infrastructure sectors. It was one of the first few companies in the aluminium alloy extrusion industry in China capable of manufacturing passenger train carriage bodies.

With its production base in Jilin province, Midas listed in Singapore in 2004 and was transferred to the main board of the the Singapore Stock Exchange in 2006.

Herbert Smith advised Credit Suisse, JP Morgan and CCB International as joint lead managers on the Hong Kong global offering. Its Hong Kong corporate team advised on both the Hong Kong and US law aspects of the transaction. The team was led by partners John Moore and Carolyn Sng, assisted by Melody Chen, Foo Hsiang Ming, Vicky Cheung, Benjamin Chou, Minchu Wang, Ye Weina, Wu Fang and Lorraine Yip.

“Midas is one of the only three secondary listed companies in Hong Kong, and the first Singapore-listed company to be secondary listed on the HKSE,” commented Sng.

“Secondary listings are uncommon in Hong Kong,” Moore noted.

Earlier this year changes to the HKSE’s listing rules led to a relaxation of criteria for secondary listings on the exchange. The change was intended to attract companies from the mining and petroleum sectors in particular, but so far few companies have taken advantage of the new rules.

Shearman & Sterling was the legal adviser to Midas as to Hong Kong law and US law; WongPartnership as to Singapore law; and Jingtian & Gongcheng as to PRC law. Global Law Office advised the underwriters on PRC law.