11 October, 2017
The Hong Kong office of law firm Eversheds has advised Precision Tsugami (China) Corporation Limited, a foreign-owned CNC high precision machine tool manufacturer in the People’s Republic of China, on its HK$504.0 million initial public offering (IPO) on the Hong Kong Stock Exchange. The company was successfully listed on 25 September 2017.
- The company raised HK$504.0 million by offering 90,000,000 shares (subject to the over-allotment option), representing 25% of the company’s total issued share capital immediately after the completion of the IPO, at HK$5.60 each.
- The Hong Kong public offer has been well over-subscribed by approximately 6.6 times.
The Hong Kong office of law firm Eversheds has advised Precision Tsugami (China) Corporation Limited on its HK$504.0 million initial public offering (IPO) on the Hong Kong Stock Exchange. The company was successfully listed on 25 September 2017.
Precision Tsugami (China) Corporation Limited (“Precision Tsugami”) is an established foreign-owned CNC high precision machine tool manufacturer in the People’s Republic of China. It was established in China in 2003 by Tsugami Corporation, a Japanese manufacturer of machine tools established in March 1937 and listed on the Tokyo Stock Exchange for over 50 years. Precision Tsugami ranked fourth in the CNC high precision machine tool industry in the People’s Republic of China and was the largest foreign-owned CNC high precision machine tool manufacturer in terms of revenue in 2016.
The company raised HK$504.0 million by offering 90,000,000 shares (subject to the over-allotment option), comprising 9,000,000 Hong Kong offer shares and 81,000,000 international offer shares, representing 25% of the company’s total issued share capital immediately after the completion of the IPO, at HK$5.60 each.
The Hong Kong public offer has been well over-subscribed by approximately 6.6 times. Halcyon Capital Limited is the sole sponsor while BOCI Asia Limited is the sole global coordinator, a joint bookrunner and a lead manager.
The transaction was led by Stephen Mok, Head of Corporate, Asia, and Norman Hui, partner, assisted by Amy Yu, Rachel Han, Luke Ng and Jennie Chow.
Stephen Mok said:
"We are very pleased to have advised Precision Tsugami on this successful IPO transaction, which is testament to the strength of the business and current investor appetite in the market.”
Dr Tang Donglei, Director, Precision Tsugami (China) Corporation Limited, commented:
“The Eversheds team has provided invaluable support throughout the entire process. It has taken a few years from the beginning of the project to the successful listing today. Led by Stephen and Norman, the team acted as our extended legal counsel to provide us with dedicated support to complete this project.”
