Shanghai Jin Jiang seals US$311 million IPO

November 30, 2006 | BY

clpstaff

Shanghai Jin Jiang International Hotels (Group) has raised US$311 million from a global initial public offering. Shares were expected to begin trading…

Shanghai Jin Jiang International Hotels (Group) has raised US$311 million from a global initial public offering. Shares were expected to begin trading on the Hong Kong stock exchange on December 15 2006.

Shanghai Jin Jiang is China's largest hotel corporation with operations and franchises in more than 73 cities. The strategic investors for this deal are Starwood Capital (founder of Starwood Hotels and Resorts Worldwide), the chairman of Bank of East Asia and Bank of China Group Investment.

According to Chan, Jin Jiang's global IPO will support the company's activities during the 2008 Beijing Olympics and the World Expo taking place in Shanghai in 2010. Jin Jiang is in a good financial position to expand luxury and budget hotel services to service the influx of customers in town to attend or participate in the events.

With China's membership to the World Trade Organization, Jin Jiang will likely experience increased interest from international investors wanting to participate in the Chinese hotel market.

Elsa Chan and Allen Shyu of Baker & McKenzie's Hong Kong office advised Shanghai Jin Jiang. Herbert Smith, Jingtian & Gongcheng and King & Wood also advised the company in processing the deal.

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