Sidley represented Shimao Services Holdings Limited (HKEX: 873) (Shimao Services) as Hong Kong and U.S. counsel in its initial public offering (IPO) on the Main Board of The Stock Exchange of Hong Kong Limited (HKEX) with a concurrent global offering pursuant to Rule 144A and Regulation S. The net proceeds raised from offering of new shares and sale shares totaled HK$9.76 billion (US$1.26 billion), assuming that the over-allotment option is not exercised. China International Capital Corporation Hong Kong Securities Limited and Morgan Stanley Asia Limited acted as joint sponsors for the IPO.
The listing is a spinoff of the property management services from Shimao Group Holdings Limited (HKEX: 813; SHA: 600823). Sidley also advised Shimao Services in its pre-IPO strategic investment. The transaction was led by partner Raymond Oh, with support from senior associate Sandy Yeung.
Shimao Services is a leading comprehensive property management and community living service provider in China. It was ranked 12th by China Index Academy (CIA) among the “Top 100 Property Management Companies in China” in terms of overall strength in 2019, and third among the Top 20 Property Management Companies in China in terms of revenue growth rate from 2018 to 2019.
The Sidley team was led by Constance Choy, a member of Sidley’s Management Committee and Executive Committee and the managing partner for the Asia Pacific region, and partner Renee Xiong, with support from counsels Claudia Yu and Julia Zhu, associates Scarlet Feng, Congsi Wu, Yuhang Li and Xiaoman Xu, China Advisor Joy Chen, and senior legal assistants Angie Fan and Zoe Yang.
New York-based partner Brian M. Kaplowitz and counsel Carla G. Teodoro advised on matters involving the Investment Company Act 1940, and partner Nicholas R. Brown and associate Rémi D. Gagnon advised on tax issues.
Sidley has advised on more than 21 Hong Kong IPOs by property management companies since 2014. Sidley is the legal advisor with the largest number of deals in this sector. Additionally, Sidley remains the number one legal adviser in the Hong Kong IPO league table by deal volume in the past 24 months (October 2018 to September 2020), according to the most recent data compiled by RyanBen Capital.
