Dentons advises Baoshen Holdings on HKEX GEM listing

On April 23th, 2018, BAOSHEN HOLDINGS LIMITED (the “Company”) (stock code: 8185) successfully listed on HKEX GEM index. During the Initial Public Offering, Company offered 105,000,000 shares, HK$0.48 per share, of which 10% was Public Offering Shares and 90% was International Placing Shares. Because of the well over-subscription, approximately 321.64 times of the total number of the Public Offer Shares initially available for subscription, the final project was adjusted as that 50% was Public Offering Shares and 50% was International Placing Shares. The proceeds would mainly be used for purchasing new manufacturing lines, increasing production capacity and repaying the bank loans. Our firm acted as the PRC legal counsel of the Company for the IPO deal and provided full legal service during the IPO process which included the red-chip restructuring, conducting due diligence, drafting the relevant sections in the Prospectus, providing legal opinions, and responding to the feedback from the SFC and the Stock Exchange of Hong Kong. The team was led by Capital Markets senior partner Michael Wang and partner Yuna Fan.

With its domestic operation entity located in Anhui Province and a broad customer group including Midea, TCL and other well-known brands, the Company is mainly engaged in the processing of plastics and steel parts for white household appliances, including manufacturing of stamping parts and processing, painting and spraying of external components. According to industrial consultant report, in the terms of sale proceeds in 2016, the company ranks the top among processors of plastics and steel parts for white household appliances in Anhui.