IPO In The Era of COVID-19.
April 28, 2020
We are proud to have played a part in our client’s successful listing in Hong Kong amidst the backdrop of a global pandemic.
Rimbaco Group Global Limited, a Cayman Islands incorporated company, was successfully listed on the Main Board of the Hong Kong stock exchange on Tuesday, 28 April 2020. This construction based group has its operations entirely in Malaysia, with notable projects in Penang.
Impact Of COVID-19
A key risk factor which was required to be disclosed in the Initial Public Offering (IPO) prospectus was the extent the business and operations of the roup are affected by the COVID-19 pandemic. This is especially in light of the movement restrictions imposed by the Malaysian Government.
Despite the volatility in the global stock markets, the company’s 315,000,000 offer shares were fully subscribed and the initially available number of 31,500,000 public offer shares were over-subscribed by more than 15 times.
Due to present circumstances including to observe social distancing, the Hong Kong Stock Exchange has postponed all listing ceremonies for the time being. However, the company may hold its listing ceremony at the Connect Hall on a future date when the situation improves.
Our firm acted as the Malaysian legal counsel for this Hong Kong IPO whereby the team was led by partner, Ong Eu Jin and associate, Lee Zai Lii @ Lily. Team members, Diane Ngu and Lim Khey Ken, were also involved in the due diligence and participated in meetings held in Malaysia and Hong Kong.
Last October, Eu Jin and his team were involved in the listing of a group of 18 companies on the Main Market of Bursa Malaysia. The group, which is classified under the construction sector, is an integrated industrial property development, construction, engineering services and property management services provider.
A seasoned speaker, Eu Jin has also presented a paper on the common issues in legal due diligence at an IPO seminar held at the Malaysian Stock Exchange.