CVM Minerals Limited

CVM Minerals Limited

Description

We acted as the sole sponsor, arranger, and joint lead manager of CVM Minerals Limited’s IPO, the first “greenfield” company listed in Hong Kong pursuant to Chapter 18 of the Listing Rules

Our Role

  • extensive due diligence and drafting prospectus

  • mining valuation and analysis

  • offer structure design

  • co-ordination of professional parties including independent technical advisers

  • extensive negotiations with the Hong Kong Stock Exchange including application for waiver from profit requirements

  • selection of underwriting syndicate

  • overall IPO process management

Key Issues

  • navigating the company through listing hurdles – loss making but exempt from profit requirements by satisfying the 3-year management experience in mining, and, or, exploration activities under Chapter 18 of the Listing Rules

  • unusually long public offer period (fifteen days) and unique offer mechanism – reduced fixed offer price at HK$1.05 ensured sufficient time for investors education and solid demand to kick in

  • successful flotation despite an extremely difficult market conditions globally