FOSUN INTERNATIONAL RAISES US$1.5 BILLION IN IPO

July 02, 2007 | BY

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Fosun International, one of China's largest privately-owned conglomerates, has raised HK$11.54 billion (US$1.5 billion) through its July 16 2007 initial…

Fosun International, one of China's largest privately-owned conglomerates, has raised HK$11.54 billion (US$1.5 billion) through its July 16 2007 initial public offering (IPO) on the Hong Kong stock exchange. Fosun offered 1.25 billion shares at HK$9.23 per share, at the top of the marketed price range, and the shares represent 20% of the company's enlarged share capital.

Fosun's business portfolio includes steel, property development, pharmaceuticals, retail, mining, financial services and strategic investments. Fosun Group, the wholly-owned subsidiary of parent company Fosun International, is a shareholder of a number of public companies, including the Shanghai-listed Nanjing Iron & Steel and the Hong Kong-listed Shanghai Forte Land and Zhaojin Mining.

Herbert Smith advised Fosun on matters of Hong Kong and US law, with a team comprising Shanghai-based partner Gary Lock and Hong Kong-based partner John Moore. Fosun was also advised by Chen & Co on PRC law.

Comments Lock of Herbert Smith: "Last year Hong Kong's IPO market was largely dominated by multi-billion dollar listings of state-owned companies such as ICBC. This year, we are witnessing a shift in the market ­ with medium-sized private companies grabbing the spotlight. The listing of Fosun is a good example of this trend and one that is likely to continue as the mainland market continues to mature."

Morgan Stanley, UBS and China International Capital Corporation were joint bookrunners and lead managers for the offering.

The underwriters were advised by Slaughter and May on Hong Kong law, Jones Day on US law and Fangda Partners on PRC law.

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