A PRC brokerage house has taken Hong Kong investors by
surprise with the biggest initial public offering (IPO) in the
territory this year. The dual-listed nature of the company led
to multilayered regulatory approval process.
Guotai Junan Securities, China’s third largest
securities company by assets, raised the second largest IPO in
the former British colony, priced at $2.1 billion. It had the
lowest cornerstone allocation among Chinese-led listings in
But with the brokerage firm already listed on the Shanghai
Stock Exchange, the dual listing made the timetable for the IPO
particularly tight. Specifically, lawyers on the deal had to
rush to get the company listed on April 11 to create a
sufficient time gap between the listing date and the
company’s scheduled announcement of its
"Timing was very critical for this deal, considering the
A-share disclosure window and the timeframe it took us...