Dentons advises on Grace Wine Holdings' Hong Kong Stock Exchange GEM listing

On June 27th, 2018, Grace Wine Holdings Limited (the “Company”) (stock code: 08146) is successfully listed on GEM board of Hong Kong Stock Exchange Kong. During the Initial Public Offering, the company offers 200,000,000 shares, and its share price has been determined at  $0.35, raising funds of 70 million HKD, of which 50% is public offering and the rest is international placing. The proceeds would mainly be used for the construction of wine-making project, the purchase of plant equipment and the expenses of marketing promotion and general operation. Dentons team comprised of senior partners Bob Fan ,Yugang Yu, Yaoli Guo, Cindy Lin and Klaus Gao acted as the PRC legal counsel to the Sponsor and provided full legal service including conducting legal due diligence, providing legal advices, drafting the relevant section in the Prospectus, and anwering the questions and feedback from the SFC and the HKEx.

With its domestic operation entity located Shanxi Province and the Ningxia Hui Autonomous Region, the company’s main business is to produce and sell wines and other grape beverage. According to industrial consultant report, in terms of the sale proceeds in 2016, the company is the largest wine producer in Shanxi, accounting for approximately 14.9% of the market share in Shanxi,In terms of retail revenue in 2016, the company took up 0.1% of the entire Chinese wine market and ranked as 16th Chinese wine producer.