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HOME > News > Transactions and Cases > AllBright advises Chang’an Renheng on Hong Kong GEM Listing

AllBright advises Chang’an Renheng on Hong Kong GEM Listing


On January 16, 2015, Zhejiang Chang’an Renheng Technology Co., Ltd. (stock code: 8139) was successfully listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong Ltd. AllBright advised Chang’an Renheng throughout the procedure. The Company is the first PRC company to be listed on GEM by placing H shares. 

Chang’an Renheng is a state-level high-tech company and a model innovation enterprise in Zhejiang Province. The company is principally engaged in the research and development, production and sales of bentonite fine chemicals. It uses bentonite as one of the major raw materials for further processing into four types of products, being papermaking chemicals, bentonite for metallurgy pellet, quality calcium-bentonite and products of other categories. According to the Frost & Sullivan Report, the total revenue of bentonite papermaking fine chemicals market in the People’s Republic of China was 485.1 million RMB in 2013. With revenue of nearly 72.4 million RMB, Chang’an Renheng accounted for approximately 14.9% in the bentonite papermaking fine chemicals market in the country in 2013, ranking first in this industry segment.  

Chang’an Renheng will issue 8 million shares at the placing price of HK$9.7 per share. The issuing price to earnings ratio is 14.70. The net proceeds will be primarily invested in high-purity water-purifying bentonite and drinking dispersant projects. 

The stock opened at HK$26.60 per share on its first trading day, which indicated a price to earnings ratio of 40.30. 

AllBright partners Shawn Zhang and Li Bo as well as associate Wang Xinglong formed the team to advise Chang’an Renheng throughout its listing procedure.