On November 11 2014, Wuxi Sunlit Science and Technology Co., Ltd. ( “Sunlit”, stock code: 1289) was successfully on the Main Board of the Stock Exchange of Hong Kong. Sunlit offered 32,000,000 H shares at a face value of RMB1 per share. The HK dollar-denominated shares, 30% of which were sold to Hong Kong investors and 25.74 times oversubscribed and 70% sold internationally, raised HK$247,040,000. The closing price on the day of listing increased by 46.89%.
A Dacheng team led by senior partner Fan Xingcheng from the Shanghai office provided PRC legal counsel for Sunlit on the H-share IPO and the listing. Sunlit had originally planned to float its shares on the A-share market but dropped that plan later on. In May 2013, it decided to have an IPO and listing at the Stock Exchange of Hong Kong. The team also included senior partner Wang Enshun, partner Song Linlin, attorney Lin Chen and Chongqing-based attorney Huang Yuling.
The team was responsible for corporate reorganization and restructuring to ensure compliance with HKEx rules, submitting attorney’s opinion letter to CSRC and answering CSRC’s questions, drafting part of the prospectus (introduction to relevant PRC laws and regulations, taxable items and foreign exchange issues, summary of key regulations and articles of association, etc.), and working with other intermediaries in answering questions raised by HKEx. With the assistance of the Dacheng team, Sunlit received approval for the IPO from both CSRC and HKEx.The team’s performance was highly acknowledged by all other intermediaries and the issuer.
Headquartered in Wuxi, Jiangsu province, Sunlit develops, designs, manufactures equipment used at steel wire product assembly lines and offers services such as the installment, testing and maintenance of the equipment. Statistics from Frost & Sullivan, a global consulting firm, shows that in 2013, Sunlit was the largest manufacturer of production equipment for steel cord for radial tire, sawing wire and steel wire ropes for rubber hose, taking a 14.3% market share in China. It is also China’s largest manufacturer of copper-clad steel wire, with a 44.9% stake in the market.
