Davis Polk Leads on $2.5 Billion China Cinda IPO
Davis Polk & Wardwell is advising China Cinda Asset Management Co. Ltd. on its upcoming $2.5 billion initial public offering in Hong Kong.
China Cinda, whose main business is acquiring nonperforming loans from Chinese banks, plans to sell 5.3 billion shares at a maximum price of $0.46 apiece. The shares are expected to list on Dec. 12.
The bulk of the proceeds from the offering will be used to grow China Cinda’s distressed asset portfolio, with the remainder to go toward launching new ancillary businesses and allocating capital to its existing subsidiaries.
China Cinda was created by the Chinese government in 1999, along with three other distressed debt managers, to allow the country’s state-owned banks to dispose of bad loans following the 1997 Asian financial crisis. The company has since branched out from the distressed debt business into investment and financial services.
Hong Kong partner Bonnie Chan is leading the Davis Polk team on the deal, which also includes Hong Kong partner Antony Dapiran and Beijing partner Li He. Haiwen & Partners Beijing partner Liu Su is serving as Chinese counsel to China Cinda.
Freshfields Bruckhaus Deringer is acting for joint global coordinators Merrill Lynch International, Goldman Sachs (Asia), UBS AG, BOCI Asia Ltd., Morgan Stanley Asia Ltd., Credit Suisse (Hong Kong) Ltd. and CCB International Capital Ltd. King & Wood Mallesons is advising the banks on Chinese law.