On July 16, 2020, Shandong Fengxiang Co., Ltd. ("Fengxiang") issued 355 million shares (excluding any over-allotment option) globally at the price of HK$3.33 per share and was successfully listed on the main board of the Stock Exchange of Hong Kong Limited (“SEHK”). In the IPO, about HK$1.18 billion were raised from investors.
Fengxiang is China's largest fully integrated chicken exporter and also McDonald's and KFC’s important supplier. Founded in 1991, Fengxiang is a modern large-scale food group located in Shandong, China. Its business includes feed processing, breeding poultry raising, broiler breeding, butchering and cutting, cooked poultry products production and sales. Fengxiang is China's second largest fully integrated white-feather broiler producer in 2019 and China's largest fully integrated white-feather chicken exporter in 2018. After its listing, Fengxiang will become the “first company listing in Hong Kong whose business covers the whole industry chain of chicken food”.
Acting as the Chinese legal counsel to the issuer, JunHe provided quality, rigorous and efficient legal services to the company, and managed to overcome the COVID-19 pandemic and other adverse factors. We assisted the issuer in conducting legal due diligence, drafting internal system, reviewing and amending transaction documents and the application and issuance documents relating to the IPO, issued Chinese legal opinions, and assisted in replying to the questions related to domestic laws which were raised by SEHK. Ultimately, we successfully helped Fengxiang obtain the approvals from the China Securities Regulatory Commission and SEHK for its listing. JunHe's solid work attitude and professional service capabilities were highly praised and trusted by our client and other intermediaries.
In the project, the lead partners were Mr. ZHOU, Fang and Mr. WANG, Yahui.