Sidley represented Sunac Services Holdings Limited (HKEX: 1516) (Sunac 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 (HKEX). Assuming the exercise in full of the over-allotment option, the offering will raise a total of HK$9.21 billion (US$1.19 billion). HSBC Corporate Finance (Hong Kong) Limited and Morgan Stanley Asia Limited acted as joint sponsors in the transaction.
Sunac Services is a spinoff of Sunac China Holdings Limited (Sunac China) (HKEX: 1918). In the global offering and separate listing of Sunac Services, Sunac China announced the declaration of a special dividend by way of a distribution in specie of Sunac Services to the qualifying shareholders of Sunac China. Meanwhile, Sunac Services received strategic cornerstone investments from Tencent, Magical Carpet Limited (which is funded by funds advised or managed by IDG Capital), Hillhouse Funds, and Snow Lake Funds.
Sunac Services is the fastest-growing large-scale property management service provider in China. According to China Index Academy, its overall growth rate — measured by the average of annual growth rates of gross floor area (GFA) under management, contracted GFA, revenue, and profit for the year — ranked highest compared with large-scale, top-100 property management companies in 2019.
The Sidley team was led by partners Sherlyn Lau and Carrie Li. Other team members also included counsels Julia Zhu and Douglas Tsang, China advisor Joy Chen, associates Jacob Zhao and Sophie Gu, legal manager Joanna Tong, senior legal assistants Alan Louey, Angie Fan, and Wendy Ho, and legal assistants Tina Wong and Jianwen Wang.
Sidley has advised on more than 22 Hong Kong IPOs by property management companies since 2014. Sidley is the legal adviser 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 (November 2018 to October 2020), according to the most recent data compiled by Ryanben Capital.