Mayer Brown JSM advises Deutsche Securities Asia and Morgan Stanley Asia as joint sponsors and Deutsche Bank AG, Morgan Stanley Asia and five other banks as underwriters on Jinmao HK$3.2 billion IPO in Hong Kong

Mayer Brown JSM has advised Deutsche Securities Asia Limited and Morgan Stanley Asia Limited as the joint sponsors and Deutsche Bank AG, Morgan Stanley Asia Limited and five other banks as underwriters on the listing of Jinmao Investments & Jinmao (China) Investments Holdings Ltd on the Hong Kong Stock Exchange. The initial public offering (IPO) has raised approximately HK$3.2 billion (US$413 million) which may further increased by approximately HK$481.5 million (US$61.7 million) if the greenshoe is exercised.

Jinmao Investments & Jinmao (China) Investments Holdings Ltd priced its offer of 600 million share-stapled units at HK$5.35 each, representing a 9 percent yield. The share stapled units comprise units in Jinmao Investments that are linked to shares in Jinmao (China) Investments Holdings Ltd, the company holding the underlying assets of the trust. The listed trust’s assets include a number of hotels in mainland China, including the Grand Hyatt Shanghai (within Jin Mao Tower), The Westin Beijing Chaoyang and JW Marriott Shenzhen. They also include the Renaissance Beijing Wangfujing Hotel and Grand Hyatt Lijiang (both currently under construction).

Speaking of the deal, Mayer Brown JSM partner James Fong said, “We are delighted to have advised our clients on Jinmao’s Hong Kong IPO. This is only the fourth time that a company has listed as a business trust in Hong Kong since 2011, and marks a significant step forward for Jinmao. We believe this deal places the Jinmao Group in a strong position for future growth and development, in accordance with its business plans.”

The Mayer Brown JSM Corporate & Securities partners team included James Fong who led the transaction, and partners Jacqueline Chiu, Chester Wong, senior associate Angela Cheung and associate Charles Kittrell. The US team was led by Mayer Brown LLP partner Jason T. Elder who was assisted by registered foreign consultant (New York, USA) Hao Yang and registered foreign lawyer (New York, USA) Chenbo Zhang.

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