Kirkland & Ellis has advised China-based mobile game distributor iDreamSky Technology on its listing on the Nasdaq, with Davis Polk & Wardwell advising the underwriters.
The U.S. offering raised $115.5 million for the Chinese distributor of blockbuster mobile games such as Fruit Ninja and Subway Surfers, after 7.7 million American Depositary shares (ADS) were priced at $15 each, above preliminary estimates of $12-$14 per share.
A higher-than-expected offer price however did not seem to deter investors, with iDreamSky’s shares opening for trade at $17.50, and gained 27 percent on its offer price to a high of $19.05 on Aug. 7, valuing the company at about $811.3 million.
The Kirkland & Ellis team that advised iDreamSky was led by Hong Kong corporate partners David Zhang and Benjamin Su.
Han Kun Law Offices and Maples and Calder advised the Chinese game distributor on PRC law and Cayman Islands law, respectively.
J.P Morgan Securities, Credit Suisse Securities (USA), and Stifel Nicolaus & Co underwrote the offering, and were advised by Davis Polk & Wardwell and Haiwen & Partners on U.S. and PRC law, respectively.
The Davis Polk team was led by Hong Kong-based corporate partner James Lin, and tax partner John Paton who is based in London.
The Chinese game distributor has partnered game developers such as Halfbrick Studios, Kiloo Group, and Imangi Studios to distribute games in China, tapping into the popularity of such games among the burgeoning, and rapidly-growing population of Chinese smartphone users.
According to a Reuters report, iDreamSky, that also distributes games from Walt Disney Co and Gameloft SA, said it plans to use proceeds from the offering to acquire game licenses, and other intellectual property rights and for acquisitions.
Tencent Holdings Ltd, China’s largest listed internet company, is the biggest shareholder in iDreamSky with a 23 percent stake, while chief executive and co-founder Michael Xiangyu Chen holds 21.2 percent.
J.P Morgan Securities, Credit Suisse Securities (USA) and Stifel Nicolaus & Co can still wield an option to purchase an additional 1.155 million American Depository shares in iDreamSky at $15 each.
