DEAL: Guotai Junan’s $2.1 billion HK IPO

Author: Brian Yap | Published: 21 Apr 2017

A PRC brokerage house has taken Hong Kong investors by surprise with the biggest initial public offering (IPO) in the territory this year. The dual-listed nature of the company led to multilayered regulatory approval process.

Guotai Junan Securities, China’s third largest securities company by assets, raised the second largest IPO in the former British colony, priced at $2.1 billion. It had the lowest cornerstone allocation among Chinese-led listings in recent years.

But with the brokerage firm already listed on the Shanghai Stock Exchange, the dual listing made the timetable for the IPO particularly tight. Specifically, lawyers on the deal had to rush to get the company listed on April 11 to create a sufficient time gap between the listing date and the company’s scheduled announcement of its first-quarter results.

"Timing was very critical for this deal, considering the A-share disclosure window and the timeframe it took us...



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