Water treatment equipment manufacturer Duoyuan Global Water has closed its US$88 million offering of American Depositary Shares on the NYSE. With shares commencing trading on June 24, the deal marks only the third IPO in the US by a Chinese company this year.
The issuer turned to a Hogan & Hartson team – led by Hong Kong partner Man Chiu Lee and Shanghai partner Arthur Mok – on US law issues. A Li Hui-led Commerce & Finance team advised on PRC law issues, while Barry Mitchell led the Maples and Calder team providing BVI law advice.
Piper Jaffray & Co. was the sole book-running manager for the offering and representative of the underwriters, which also included Oppenheimer & Co and Janney Montgomery Scott. The underwriters were advised by a Kurt Berney-led O’Melveny & Myers team on US law issues and a Liu Yan-led Tian Yuan Law Firm team on PRC law issues.
Hogan & Hartson acted on the two previous US IPOs by Chinese companies. Team leader Man Chiu Lee said: "The successful offering by Duoyuan reflects a strong sentiment for continued investor interest in market leading companies in China."
The water treatment industry in China is projected to grow approximately 15% a year in the next few years.