Five law firms advised on a secondary offering of American depositary shares (ADS) of hotel chain Atour Lifestyle Holdings worth USD98 million.
The original shareholder, Legend Capital Management, sold its holdings in Atour, totalling 6.62 million ADS shares valued at USD98 million, in a public offering after a 180-day blackout period.
In the US, a secondary offering is when a major individual or institutional shareholder offers a company’s restricted stock to the public, with the process identical to an IPO. The US Securities and Exchange Commission must approve the offering. Atour hotel’s listing on the Nasdaq last November was seen as a signal that the ice had thawed for Chinese stocks to go public in the US.
Partner He Li led the Davis Polk team, advising Atour on US federal securities and New York state law, while JunHe counselled on PRC law.
Bank of America Securities and China Merchants Bank International were the underwriters in the transaction. Partner Allen Wang led the Latham & Watkins team for the underwriters, acting as counsel on US federal securities and New York state law. Zhong Lun Law Firm advised on PRC law.
Partners Steve Lin and Justin Zhou led the Kirkland & Ellis team representing Legend Capital Management in the ADS sale.
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