10 December 2014
Clifford Chance advises on CGN Power's jumbo IPO
Leading international law firm Clifford Chance has advised a group of underwriters including China International Capital Corporation, BofA Merrill Lynch and ABC International on CGN Power Co, Ltd's US$3.16 billion listing on the Hong Kong Stock Exchange. The deal was priced at the top end of the price range at HK$2.78 per share, raising an amount of HK$24.52 billion (US$3.16 billion), and making it the largest listing in Hong Kong and the second largest in the region so far this year. It also marks the first time a nuclear operator has listed in Hong Kong.
The deal drew record demand from institutional and retail investors, and was the most heavily oversubscribed IPO in Hong Kong in recent years.
The IPO also attracted a solid list of investments from 18 cornerstone investors including China Southern Power Grid, China Yangtze Power, CLP, China Development Bank International, GIC, China Life Insurance, China Reinsurance, Och-Ziff, Value Partners, Cinda Sino-Rock, China Minmetals, China Alpha and Chow Tai Fook.
CGN Power is China's largest nuclear power producer and currently operates 11 nuclear power generating units mainly in Guangdong province. Proceeds from the listing will be used for acquisitions and for the expansion of existing nuclear facilities.
Corporate partner Amy Lo who led on this transaction said, "We're thrilled to have worked on this landmark transaction. It marks a first for the nuclear industry and signals the growth opportunities in this sector given China's mandate to grow renewable energy and to reduce its use of fossil fuels."
Clifford Chance has acted on 13 Hong Kong IPOs this year raising a total of US$ 7.93 billion including the IPOs for China CNR, Harbin Bank, and Poly Culture. Clifford Chance is also advising the H share listing of BAIC Motor Corporation Limited which was launched this week.
Amy was supported by US securities partner Fang Liu. They were assisted by consultant Anthony Wan, senior associate Philip Chan, associates Corey Zhang, Huang Shan, Liu Gehuan and trainee Michelle Kwok. Partner Tim Wang and consultant Gao Peiji also assisted.