On November 25, 2019, Huali University Group Limited ("Huali University", Stock Code: 1756.HK) successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited (SEHK). It issued 300 million shares worldwide at an offer price of HK$3.26 per share and raised funds of HK$978 million in total. This was JunHe's fifth IPO matter (the “Matter”) in the education sector consummated in 2019, following those of China East Education, Scholar Education, Edvantage Group and DAO.US.
Huali University operates three private schools in Guangzhou, China: Huali College Guangdong University of Technology, Guangzhou Huali Science and Technology Vocational College and Guangdong Province Huali Technician College. According to the IPO documents, Huali University is a leading large-scale private higher education and vocational education group in South China, offering applied science and practice-oriented programs. In 2018, as measured by student enrollments, Huali University ranked second among all private vocational education service providers and fourth among all private higher education service providers in South China.
JunHe acted as the PRC legal counsel to the sole sponsor (China Securities (International) Corporate Finance Company Limited) and the underwriters in the Matter. JunHe assisted in completing the issuer's domestic and overseas restructuring, conducted legal due diligence investigations on the issuer's domestic subsidiaries and affiliated schools and participated in discussions regarding the major issues in respect of the Matter. JunHe’s team participated in interviews with governmental authorities, and drafted, reviewed and revised the application and issuance documents relating to the subject listing. JunHe issued the PRC legal opinions, assisted in answering feedback questions from the Securities and Futures Commission (SFC) and the SEHK on the listing application and ultimately assisted Huali University to successfully list on the Main Board of the SEHK.