Corporate insights: February 2013
Last year saw a lacklustre IPO market in Hong Kong. Listings of equity securities dropped from a peak of 106 new listings in 2010 to 50 new listings on the Main Board in 2012. Along with the decline in the number of listings, there was a noticeable increase in the number of cornerstone investments.
Cornerstone investors are investors who agree to buy a pre-agreed amount of the international placing shares on offer in an IPO. They are also known as “strategic investors”. While initially in Hong Kong, cornerstone investors were commonly the city’s tycoons, nowadays, the profile of cornerstone investors has evolved to include investment funds, state-owned corporations and other companies within the same industry. For example, in the listing of Zhengzhou Coal Mining Machinery Group Company Limited , the cornerstone investors included a subsidiary of China Huadian Corporation, a PRC state-controlled entity, which is the controlling shareholder of Huadian Fuxin Energy Corporation Limited (which listed in Hong Kong in June), while another cornerstone investor in that listing was a company in the same industry (namely, a wholly-owned subsidiary of Inner Mongolia Yitai Group Co. Ltd., which is also the controlling shareholder of Inner Mongolia Yitai Coal Co., Ltd. which listed in Hong Kong in July)…
If you are registered and logged in to the site, click on the link below to read the rest of the Hogan Lovells briefing. If not, please register or sign in with your details below.
News from Hogan Lovells
News from The Lawyer
Briefings from Hogan Lovells
The new Companies Ordinance (Cap. 622), which came into effect on 3 March 2014, is a substantial rewrite of Hong Kong companies law.
Employment News — 14 April 2014: the final straw — employer entitled to take strict view in light of previous warnings
Before his dismissal, the claimant in Disotto Food Ltd v Carlos Santos for misconduct he had been given three warnings about his conduct.
Analysis from The Lawyer
Beyond the headline infrastructure projects, UK construction work is still recovering from the clobbering it took during the slump
When a firm shouts loudly about a landmark merger, as SJ Berwin did when it joined forces with King & Wood Mallesons, departures are always likely to come under the spotlight.