Sidley Austin, Orrick, Jingtian & Gongcheng,  Carey Olsen, Memery Crystal and Zong Heng Law Firm have all won mandates in the first-ever delisting of a Chinese company from London’s AIM (alternative investment market) – and the subsequent listing in Hong Kong with a 144A placement to US investors.

 Sidley Austin, Carey Olsen, Memery Crystal and Zong Heng Law Firm acted as counsels to West China Cement – a cement producer in the Shaanxi province of Western China. A cross-border team of capital market lawyers from Orrick’s Hong Kong and London offices advised ICBC International Capital and Deutsche Bank – the joint sponsors managing the transaction.

The company, which was previously listed on London’s AIM, was simultaneously de-listed from AIM prior to listing in Hong Kong. The delisting and public offering took place on 23 August 2010.

"Hong Kong currently offers good opportunities to companies which need capital markets funding to grow. We anticipate seeing more Chinese companies delisting from AIM and going to Hong Kong,” Orrick Asia corporate group leader and Hong Kong partner Edwin Luk told ALB. “As the markets continue to improve, we also hope to see some of our clients, particularly in the technology and renewable energy sectors, look to the US to raise capital."

According to Hillary Winter, Orrick’s Europe corporate group leader and London partner, the relative lack of liquidity and lower valuations on AIM, had led mature companies such as WCC to look to other markets to raise capital.

“Hong Kong has a very active IPO market and was an obvious choice for a company whose operations are in China,” Winter said. ALB