CSmall Group Limited (CSmall) completed its listing on The Stock Exchange of Hong Kong Limited (HKEX) and initial public offering of 194 million shares priced at HK$2.38 ($0.30) per share, raising gross proceeds of approximately $59 million (before exercise of the over-allotment option). The listing represented CSmall’s spin-off from its parent company China Silver Group Limited (China Silver), which is also listed on HKEX.
Headquartered in Shenzhen, the tech hub of southern China, CSmall is the largest integrated online and offline Internet-based jewelry retailer in China in terms of sales revenue and the number of registered users. The spin-off listing has availed CSmall of a clearer and fairer valuation as well as a more defined focus as a “new economy” company, which now operates independently of China Silver’s traditional businesses of non-ferrous metal manufacturing and commodity exchange operations.
The global offering consisted of a Regulation S offering outside the United States and a public offering in Hong Kong, with China Merchants Securities (HK) Co., Limited as the sole sponsor, sole global coordinator and sole bookrunner.
Over a two-year engagement, S&C advised China Silver in respect of its establishment of CSmall’s employee share scheme, its partial divestiture of CSmall to pre-IPO investors and its spin-off application to HKEX, and advised CSmall on Hong Kong law matters in respect of the global offering.
The S&C Hong Kong-based team was led by Kay Ian Ng and Gwen Wong, along with Sarah Luo, Jerry Gao and Dickson Wong.