Orrick, Herrington & Sutcliffe (Orrick) has advised China Kingstone Mining Holdings Limited on (Kingstone), China’s largest marble mining operator, on its HK$1.3 billion (US$167 million) initial public offering on the Main Board of the Hong Kong Stock Exchange, with a rule 144A/Regulation S placement to global investors.
Kingstone is a marble mining company with operations in Sichuan province, western China and the largest marble mine operator in China in terms of reserves and capacity. The listing took place on March 18, 2011, under Chapter 18 of the listing rules which governs the listing of mineral companies.
The sponsor was Citigroup Global Markets Asia Limited. Five cornerstone investors have bought a total of US$48 million of shares in the offering.
A team of Hong Kong and New York qualified lawyers from Orrick’s Hong Kong, Shanghai and Beijing offices, led by partners Edwin Luk and Allen Shyu, advised Kingstone. Orrick’s China private equity team, led by partner Maurice Hoo, also represented Kingstone in its pre-IPO investment by Morgan Stanley Special Situations Group in 2010.
Edwin Luk, Orrick’s Asia Corporate Group leader, commented: “Kingstone Mining is the first Chinese marble mining company to list in Hong Kong.” He added: “Hong Kong has been actively targeting listings from companies in the mining and resources industries. Many of Orrick’s Chinese clients in these sectors are looking to grow, so we expect to see an increase in our private equity and capital markets transactions for these sectors in 2011.”
Orrick’s China capital markets team has raised more than US$6 billion for Chinese companies in Hong Kong over the last four years. The firm’s capital markets track record and expertise in the mining and natural resources industries allows Orrick to regularly advise clients in this sector.