DLA Piper today announces that it has advised the sponsor and underwriters of Magnum Entertainment Group Holdings Limited ("Magnum Entertainment") on its HK$126 million flotation on the Main Board of The Stock Exchange of Hong Kong Limited (Stock Code: 2080). Magnum Entertainment is the operator of the largest group of clubbing venues in Hong Kong, by gross floor size and premise capacity.
Magnum Entertainment initially offered 84,000,000 shares in aggregate with 75,600,000 (or 90% of the offer shares) for international placing and 8,400,000 (the remaining 10%) for public offering in Hong Kong. The listing offer price was HK$1.5 per share, the upper end of the offer price, and the public tranche was more than 3,500 times oversubscribed. This makes Magnum Entertainment the highest oversubscribed IPO in Hong Kong, beating the previous largest, the Milan Station IPO in May 2011, which was 2,178 times oversubscribed.
The proceeds of the listing will fund the opening on a new club, Zentral, in the new California Tower in Lan Kwai Fong this year, further marketing and business development activities, research of expansion plans into areas outside of Hong Kong (specifically mainland China and Southeast Asia) and additional general working capital.
Mike Suen, partner at DLA Piper said: "We would like to congratulate Magnum Entertainment on such a successful initial public offering. The listing will further bolster an already strong and well developed business by enabling the management to take the company onto the next stage of their corporate journey, including investing outside of Hong Kong and further developing the business in its existing market. This IPO was completed with the hard work of all deal parties whom we were glad to work with on such a complex listing".
The deal team included Anglo Chinese (sole sponsor), BOCOM International (sole global coordinator and sole book runner), KPMG (reporting accountants), DLA Piper (sponsor's and underwriters' lawyer), Li & Partner (issuer's lawyer). The DLA Piper team was led by Mike Suen (partner), David Cheng (associate) and Tiffany Tse (trainee).
