Huatai Securities sets price range for GDR offering on London Stock Exchange

Further to the announcement by Huatai Securities Co., Ltd. (SHA:601688), a technology-enabled securities group in China, confirming its plans to list global depositary receipts (GDRs) on the London Stock Exchange, the company today says it has set the price range for its proposed offering of GDRs.

The price is set at between USD 20.00 and USD 24.50 per GDR, with each GDR representing ten A shares of the company, each with a fully paid nominal value of RMB1.00 each. The final offer price will be determined based on a book-building process. The offer period is expected to begin today and to end on June 14, 2019.

The maximum total offering will consist of an offer of up to 82,515,000 GDRs, including GDRs which may be issued pursuant to the over-allotment option granted to J.P. Morgan Securities plc, pursuant to which it may purchase or procure purchasers for additional GDRs up to a maximum of 10% of the total number of GDRs sold in the Offering. The Stabilising Manager’s ability to undertake stabilisation action depends on deferred settlement arrangements having been agreed with one or more investors in order to allow it to over-allot GDRs.

The final offer price per GDR and the final number of GDRs to be offered are expected to be determined on or around June 14, 2019.

Conditional dealings in the GDRs on the London Stock Exchange are poised to begin on a “when-issued” basis on or around June 17, 2019. Unconditional dealings in the GDRs are expected to commence on or around June 20, 2019.

Assuming the maximum number of Offer GDRs and full exercise of the Over-Allotment Option, gross proceeds from the offering will amount to between approximately USD1,650.3 million and USD2,021.6 million and the number of GDRs will represent approximately 10% of Huatai’s outstanding share capital.

The company also confirms that its prospectus in connection with the Offering and Admission has today been approved by the FCA.