5 September, 2018
Baker McKenzie recently advised Chong Hing Bank ("the Bank") on a rights issue of up to 361,313,000 rights shares on the basis of one rights share for every two shares at the price of HKD14.26 per rights share, raising up to approximately HKD 5.15 billion.
Separately, the Bank has allotted and issued to Guangzhou Metro Investment Finance (HK) Limited, which is wholly owned by Guangzhou Metro Group Co., Ltd., 70,126,000 subscription shares at the price of HKD14.26 per share.
A total of up to HKD6.15 billion is expected to be raised by both the subscription and the rights Issue; and the Bank intends to use the proceeds to strengthen its capital base and further support the ongoing growth of its business.
The Baker McKenzie team was led by Hong Kong-based Partners Christina Lee and Dorothea Koo, and supported by Associates William Cho and Stephanie Mak. The team acted as lead counsel on the rights issuance transaction with primary responsibility for preparing and negotiating the transaction documentation, advising on legal and regulatory issues and general transaction management.
Commenting on the deal, Christina Lee said, "We are very delighted to have assisted Chong Hing Bank in this capital raising exercise which is one of the very first rights issuances taken place after the July 2018 amendments to the Listing Rules. We are pleased to bring this strategic transaction to fruition for our client under the new regime, and we look forward to continue supporting our client as they expand their business."
DBS Asia Capital Limited and Nomura International (Hong Kong) Limited are the joint coordinators for the subscription and financial advisers to the rights issue.
