Clifford Chance

Clifford Chance advises Yitai Coal on US$861 million IPO

Leading international law firm Clifford Chance has advised Inner Mongolia Yitai Coal Company, Limited, (Yitai Coal) on its issuance of 161,465,100 H shares at US$5.54 (HK$43.00) each raising approximately US$861.2 million (HK$6.679 billion). China International Capital Corporation Hong Kong Securities Limited, BOCI Asia Limited, ICBC International Capital Limited, Merrill Lynch International, Merrill Lynch Far East, Credit Suisse (Hong Kong) Limited, UBS AG, Hong Kong Branch, BNP Paribas Capital (Asia Pacific) Limited, China Merchants Securities (HK) Co., Limited and Macquarie Capital Securities Limited acted as underwriters.

Clifford Chance has advised the issuers on all four of the H share listings on the Hong Kong Stock Exchange to date this year including the first and second biggest IPOs, Haitong Securities Co. Ltd's US$1.77 billion IPO and Yitai Coal respectively. The Firm also advised Huadian Fuxin Energy Corporation on its US$338 million IPO and China Aluminum International Engineering Corp Ltd (Chalieco) on its US$184 million IPO.

Beijing partner Tim Wang who led on the deal said, "Our team is very pleased we have been able to work on a number of successful listings during such volatile economic times. This most recent listing for Yitai Coal raised a significant amount of funds, the second largest this year, despite market uncertainties."

Tim along with Beijing partner Jean Yu were supported by associates Ian Yang and Tianning Xiang. Shanghai partner Jean Thio and Crawford Brickley provided US legal advice. They were supported by Hong Kong senior associates Rong Chen and Eli Gao, and Beijing associate Lindsay Gao.

Yitai Coal is the largest local coal enterprise in Inner Mongolia, China, and one of the largest coal enterprises in China. Coal operations are its core business and mainly include the production, transportation and sales of coal. The company has seven operating mines and two mines under development. All of its coal mines are located in the Ordos region of Inner Mongolia.

Clifford Chance's Greater China corporate team has advised on many equity capital markets transactions including the following totalling over US$8 billion: Haitong Securities Co. Ltd's US$1.77 billion IPO on HKSE; China  Minsheng Bank's US$1.44 billion placement on HKSE; Kunlun Energy's (subsidiary of PetroChina) US$1.35 billion top-up placing; Goldman Sachs block trade of US$2.3 billion ICBC shares to Temasek; Pacific Andes International (listed on HKSE) and its subsidiary, Pacific Andes Resources Development (listed on SGX) parallel rights issue of US$96 million and US$172 million; Huadian Fuxin Energy Corporation's US$338 million  IPO on the HKSE; China Aluminum International Engineering Corp Ltd's (Chalieco) US$184 million on HKSE; and Inner Mongolia Yitai Coal Co, Ltd's US$861.2 million IPO on the HKSE.