Appleby acted as Cayman counsel for Xinchen China Power Holdings Limited in relation to its listing on the Main Board of the Hong Kong Stock Exchange with proceeds of approximately HK$878 million.
Proceeds from the offering will be used primarily to fund the expansion of production capacity, new product development activities and construction of a new research and development center in Chengdu, Sichuan province.
The Appleby team was led by Judy Lee, a Corporate Partner in Appleby’s Hong Kong office, assisted by Associate, Paul Cheuk. Shearman & Sterling advised Xinchen as to Hong Kong and U.S. law, while Jingtian & Gongcheng advised Xinchen as to PRC law.
Judy commented, “We are seeing encouraging signs in the Hong Kong IPO market recently as a number of issuers are scheduled to be listed. Renewal interests from investors who have shied away from the IPO market last year are picking up”.
About the company
The Xinchen Power group, a spin off and a subsidiary of Brilliance China Automotive, is one of the leading automotive engine manufacturers in the independent branded segment of the PRC passenger vehicle (“PV”) and light commercial vehicle (“LCV”), engine market in terms of sales volume in 2011. They develop, manufacture and sell light-duty gasoline and diesel engines used by various local and foreign-invested PV and LCV manufacturers in the PRC.
