How we helped a Chinese tech giant with a landmark secondary listing on the HKEX
Toppan Nexus Hong Kong 8 Aug 2022

Our client was a Chinese technology giant specializing in ecommerce and retail, the market leader enabling small and medium sized Chinese companies to trade globally. They have since grown into many other adjacent business verticals, including, inter alia, logistics, cloud services, digital media and entertainment. The client was primarily listed on the New York Stock Exchange (“NYSE”) and were the first large company to apply for secondary listing on the Hong Kong Stock Exchange (“HKEX”) under the Chapter 19C regime. This was a landmark transaction, capitalizing swiftly on changes to the changes in HKEX new rules allowing weighted voting rights, and time was of the essence to the client.

the challenge

Listing on the HKEX is a complex process, with detailed documents to be drafted by a large working group, and many rounds of submission and comments to the HKEX for approval, this was made even more complicated by the fact the issuer had an existing listing on NYSE and everything needed to be done on an extremely confidential basis – to safeguard investor and company rights, and to prevent market speculation and reputational damage.

Taking advantage of the new “paperless submission” option to further increase confidentiality and reduce risk of any leakage was a further step taken by the working group – this being the first ever paperless listing submitted to the HKEX, with all parties having to manage a new and unfamiliar process for such an important client and transaction.

Further to the pre-known hurdles above, this transaction was in progress at the time of the large scale, and month-long social unrest in Hong Kong. Some of the toughest days of business operations in Hong Kong, there were large scale protests all over Hong Kong, logistics and transportation blockages caused by sustained road closures, severe and sudden damage to public transportation and infrastructure – leaving the city all but paralyzed for months.

our solution

The Toppan Nexus team rose to the challenge, embracing the first secondary listing under Chapter 19C on HKEX, the first ever paperless listing submission on HKEX, and a landmark listing with exclusive access to a specific set of conference rooms, with a dedicated and most experienced service team and a sophisticated and highly demanding working group.

the results

Thanks to strong Business Continuity Plan (BCP) and “mission-first” culture and attitude, Toppan Nexus successfully overcame all challenges, served the clients round the clock without interruption (even when the roads were closed and protests were surrounding the building), and ensured that the landmark transaction was completed smoothly and efficiently to the highest standards! A testament to Toppan Nexus expertise as a global market leader in the Regulated Communications industry.