MORE MAINLAND BRANDS COMPLETING IPOS IN HK

Xtep International, a domestic fashion sportswear enterprise in the PRC, has completed the HK$2.23 billion (US$285 million) Hong Kong IPO and Rule 144A / Regulation S global offering.

The global offering consisted of an aggregate of 550 million offer shares priced at HK$4.05. The net proceeds from the global offering are estimated to be approximately HK$2.07 billion (US$265 million) if the over-allotment option is not exercised or approximately HK$2.39 billion (US$306 million) if the over-allotment option is fully exercised. Xtep intends to use the net proceeds for media advertising, brand promotion, expansion of its distribution network, expansion of production facilities, brand acquisitions, development of management information systems, working capital and other general corporate purposes.

Xtep International was advised by Orrick, Herrington & Sutcliffe on matters of Hong Kong and US law and Jingtian & Gongcheng on matters of PRC law. Jun He Law Offices advised the underwriters on matters of PRC Law. Herbert Smith advised on both the Hong Kong and US law aspects of the IPO. The team was led by partners Ashley Alder, Michael Fosh and Kevin Roy. They were assisted by senior associates Jason Sung and Sin Wei Ong, associates Benjamin Chou, Eileen Tam, Anthony Wan, and Xiao Liu, and paralegal Christina Fu.