Herbert Smith Advises on HK$8.2 Billion IPO of Sun Art Retail Group Limited

Herbert Smith has advised The Hongkong and Shanghai Banking Corporation Limited, UBS AG Hong Kong Branch, Citigroup Global Markets Asia Limited, BNP Paribas Capital (Asia Pacific) Limited, China International Capital Corporation Hong Kong Securities Limited, Goldman Sachs (Asia) L.L.C., and Morgan Stanley Asia Limited, as joint bookrunners on the HK$8.2 billion (US$1.1 billion) IPO of Sun Art Retail Group Limited (“Sun Art”) on the Main Board of the Hong Kong Stock Exchange and Rule 144A/Regulation S global offering.

Sun Art is the largest hypermarket operator in China. The company operates 197 hypermarket complexes in China under brand names Auchan and RT-Mart. It also has 51 locations under development that are expected to start operating by next year. The company intends to use the net proceeds from the global offering to finance the planned hypermarket developments, repay debts, remodel existing stores, acquire ownership of the existing hypermarket properties, set up or remodel new distribution centers and upgrade information systems, as well as for working capital.
The Hong Kong team was led by corporate partner Matt Emsley, senior associate Victor Pang and associate Vivien Ji. The US team was led by corporate partner John Moore, and associate Minchu Wang.
Matt Emsley commented:
“We are pleased to advise our valued investment banking clients on the listing of Sun Art, one of the largest and most exciting IPOs in Hong Kong this year, on the Main Board of the Hong Kong Stock Exchange. The deal once again demonstrates the strong capability of our firm’s corporate practice. I’d like to thank my team for their contribution and hard work for a successful closure.”
The Hongkong and Shanghai Banking Corporation Limited, UBS AG Hong Kong Branch and Citigroup Global Markets Asia Limited, were joint global coordinators, joint sponsors, joint bookrunners and joint lead managers. BNP Paribas, China International Capital Corporation Hong Kong Securities Limited, Morgan Stanley Asia Limited and Goldman Sachs (Asia) L.L.C. were the joint bookrunners and joint lead managers.