Cases & Deals

BOC International, BOCI Asia and Celestial Capital complete IPO of $127 million of H shares and global placements by Lingbao Gold Company Ltd.

Clients BOC International Holdings Limited, BOCI Asia Limited, Celestial Capital Limited

Jones Day advised BOCI Asia Limited, BOC International Holdings Limited and Celestial Capital Limited in an initial public offering for Lingbao Gold Company Ltd., the second-largest gold producer in the PRC. Anne Ko, our Hong Kong-based capital markets partner, led the Jones Day team advising the global coordinator and bookrunner, BOC International Holdings Limited, and the joint sponsors, BOCI Asia Limited and Celestial Capital Limited, on the HK$990 million (approximately US$127 million) IPO of Lingbao Gold on the main board of the Hong Kong Stock Exchange by way of international placing and public offering of H shares.

Lingbao Gold is one of the leading integrated gold-mining companies in the PRC and is principally engaged in gold mining and smelting. The company is one of only two Chinese gold companies listed in Hong Kong. With gold prices hitting 25-year highs, the company's IPO successfully drew heavy investor demand, resulting in over 731 times oversubscription for its retail portion. The huge oversubscription prompted the company to significantly raise the retail portion from 10 percent to 50 percent of the total number of offer shares initially available under the global offering.

Shares in Lingbao Gold soared approximately 32.88 percent on its first day of trading, 12 January 2006. After the full exercise of an overallotment option, the Chinese issuer sold a total of approximately 297.3 million Hshares, or 38.59 percent of its enlarged share capital, at the top end of the proposed price range. Total net proceeds from the IPO were approximately HK$834 million (US$107 million) and are intended for the company's development of mining activities and expansion of its smelting operation.

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