Be ready for success
Going Global
Be ready for success - A case study of AIM listing Stephen Ye (Counsel)
Pinsent Masons LLP October 2008 1
Chinese companies on AIM • • •
By March 2008: 68 Chinese enterprises on AIM, 6 on the Full List Year 2007: 17 China-based companies listed on AIM • raised US$1.9 billion in total, US$112 million in average Wide variety of sectors Market Cap. Distribution of Chinese AIM Co.
2
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
Market Cap. Distribution
浙江东南发电股份有限公司
（昱辉阳光能源） 昱辉阳光能源）
（浚鑫科技） 浚鑫科技）
3
Presentation title | © Pinsent Masons LLP 2008
（华西水泥） 华西水泥）
16 December 2008
（宏霸数码集团） 宏霸数码集团）
Case Study: ReneSola • • • •
Corp. Name AIM IPO: Fund Raised: Issue Price:
ReneSola 8 August 2006 US$50 million 79 pence (US$1.5)
•
NYSE (ADR):
• •
Market Cap.: Share Price:
Secondary listing in Jan.2008, raising US$119.6 million US$1.25 billion (May 2008) 530 pence (May 2008)
•
A successful IPO for start-up: 9 months after incorporation Enables/facilitates expansion in own and other markets (it is not just the raising of funds: the ability to acquire and issue new shares, rather than cash, offers additional flexibility to assist M&A activity)
•
4
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
（昱辉阳光能源） 昱辉阳光能源）
Challenges faced
• Need a good reason in seeking AIM flotation • Ability to demonstrate future growth potential • Structuring the group • In compliance with laws in various jurisdictions • PRC M&A Rules, SAFE Circular 75 • Strong management team needed • a qualified financial director • English speakers
• Tidy up legal issues • loans, property, tax, labour, • disputes, social insurance, IPR, etc.
5
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
What can company do to help
• • • • • •
Planed ahead Set a realistic timetable Maintain positive trading performance during timetable Make internal resources available Get paperwork in order Appoint a team of experienced advisers
Never too early to start planning!
6
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
Role of company lawyers
• • • • • • •
7
Assisting the company to prepare for the flotation process Legal due diligence Liaising with lawyers and other advisers Preparing the legal documents Guiding through the responsibilities of Directors Verification Negotiation with Nomad and Broker
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
About Pinsent Masons
8
•
Full service international law firm – 290 partners and over 1,000 lawyers
•
Advised on over 50 AIM flotations
•
Ranked No.1 of all UK solicitors in terms of volume of AIM clients (Hemscott 2008)
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
Credentials
擎天软件
（昱辉阳光能源） 昱辉阳光能源）
Sinosoft Technology – raised £8.5m (US$17m), market capitalisation £31.46m (US$62.92m). ReneSola – raised US $50m on AIM (and US$119m on NYSE), market capitalisation US$1.25bn. Haike Chemical Group – raised £30.7m (US$61.4m), market capitalisation £ 60m (US$120m). Blue Star SecuTech Inc. –raised £11.1m (US $22.2m), market capitalisation £35m (US $70m). China Medical System Holdings –raised £10m (US $20m) , market capitalisation £65.2m (US $70.4m).
9
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
Contacts
Jon Harris Tel: +44 207 418 7072 Mob: +44 7780 958379 Email: [email protected]
Jonathan Reardon Tel: +86 21 6138 1110 Mob: +86 1368 197 0873 Email: [email protected]
Bao Xiangzhi Tel: +86 10 8519 0108 Mob: +86 197 1005 4511 Email: [email protected]
Stephen Ye Tel: +86 21 6138 1148 Mob: +86 150 0066 8043 Email: [email protected]
www.pinsentmasons.com
10
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
Be ready for success - A case study of AIM listing Stephen Ye (Counsel)
Pinsent Masons LLP October 2008 1
Chinese companies on AIM • • •
By March 2008: 68 Chinese enterprises on AIM, 6 on the Full List Year 2007: 17 China-based companies listed on AIM • raised US$1.9 billion in total, US$112 million in average Wide variety of sectors Market Cap. Distribution of Chinese AIM Co.
2
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
Market Cap. Distribution
浙江东南发电股份有限公司
（昱辉阳光能源） 昱辉阳光能源）
（浚鑫科技） 浚鑫科技）
3
Presentation title | © Pinsent Masons LLP 2008
（华西水泥） 华西水泥）
16 December 2008
（宏霸数码集团） 宏霸数码集团）
Case Study: ReneSola • • • •
Corp. Name AIM IPO: Fund Raised: Issue Price:
ReneSola 8 August 2006 US$50 million 79 pence (US$1.5)
•
NYSE (ADR):
• •
Market Cap.: Share Price:
Secondary listing in Jan.2008, raising US$119.6 million US$1.25 billion (May 2008) 530 pence (May 2008)
•
A successful IPO for start-up: 9 months after incorporation Enables/facilitates expansion in own and other markets (it is not just the raising of funds: the ability to acquire and issue new shares, rather than cash, offers additional flexibility to assist M&A activity)
•
4
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
（昱辉阳光能源） 昱辉阳光能源）
Challenges faced
• Need a good reason in seeking AIM flotation • Ability to demonstrate future growth potential • Structuring the group • In compliance with laws in various jurisdictions • PRC M&A Rules, SAFE Circular 75 • Strong management team needed • a qualified financial director • English speakers
• Tidy up legal issues • loans, property, tax, labour, • disputes, social insurance, IPR, etc.
5
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
What can company do to help
• • • • • •
Planed ahead Set a realistic timetable Maintain positive trading performance during timetable Make internal resources available Get paperwork in order Appoint a team of experienced advisers
Never too early to start planning!
6
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
Role of company lawyers
• • • • • • •
7
Assisting the company to prepare for the flotation process Legal due diligence Liaising with lawyers and other advisers Preparing the legal documents Guiding through the responsibilities of Directors Verification Negotiation with Nomad and Broker
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
About Pinsent Masons
8
•
Full service international law firm – 290 partners and over 1,000 lawyers
•
Advised on over 50 AIM flotations
•
Ranked No.1 of all UK solicitors in terms of volume of AIM clients (Hemscott 2008)
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
Credentials
擎天软件
（昱辉阳光能源） 昱辉阳光能源）
Sinosoft Technology – raised £8.5m (US$17m), market capitalisation £31.46m (US$62.92m). ReneSola – raised US $50m on AIM (and US$119m on NYSE), market capitalisation US$1.25bn. Haike Chemical Group – raised £30.7m (US$61.4m), market capitalisation £ 60m (US$120m). Blue Star SecuTech Inc. –raised £11.1m (US $22.2m), market capitalisation £35m (US $70m). China Medical System Holdings –raised £10m (US $20m) , market capitalisation £65.2m (US $70.4m).
9
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
Contacts
Jon Harris Tel: +44 207 418 7072 Mob: +44 7780 958379 Email: [email protected]
Jonathan Reardon Tel: +86 21 6138 1110 Mob: +86 1368 197 0873 Email: [email protected]
Bao Xiangzhi Tel: +86 10 8519 0108 Mob: +86 197 1005 4511 Email: [email protected]
Stephen Ye Tel: +86 21 6138 1148 Mob: +86 150 0066 8043 Email: [email protected]
www.pinsentmasons.com
10
Presentation title | © Pinsent Masons LLP 2008
16 December 2008
