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First Capital Securities as the Joint Bookrunner and Joint Lead Manager in the Successful Listing of Xinglu Water on the Main Board of HKEx

2017.03.31

Luzhou Xinglu Water (Group) Co., Ltd. (“Xinglu Water”, stock code: 2281) was successfully listed on the Main Board of the Hong Kong Stock Exchange today, with First Capital Securities Limited (“First Capital Securities”), a wholly-owned subsidiary of China First Capital Group Limited (“CFCG” or the “Group”, stock code: 1269), as the joint bookrunner and joint lead manager.

A total of approximately 215 million H Shares was offered under the global offering of Xinglu Water, which comprised 21,494,000 H Shares under Hong Kong public offering and approximately 193 million H Shares under international offering. The public offering was well received by the market and oversubscribed by 5.12 times. The price of the shares was set at HK$2.3 per share, raising net proceeds of approximately HK$390 million. BOCOM International (Asia) Limited was the sole sponsor and sole global coordinator of the global offering, whereas the joint bookrunners and the joint lead managers were BOCOM International Securities Limited, First Capital Securities Limited and Haitong International Securities Company Limited.

Currently, Xinglu Water is principally engaged in tap water supply and wastewater treatment. As at the end of October 2016, Xinglu Water operated six tap water supply plants with an aggregate designed capacity of approximately 280,500 tons per day and nine wastewater treatment plants with an aggregate designed capacity of approximately 261,000 tons per day.

During the first quarter of 2017, First Capital Securities completed three offering projects as the underwriter in total. In addition to the initial public offering of Xinglu Water, it also acted as the joint bookrunner and joint lead manager of China Yuhua Education Corporation Limited (stock code: 6169) and the co-lead manager of Minsheng Education Group Company Limited (stock code: 1569).

Ms. Flora Wan, Chief Operating Officer of First Capital Securities, said, “As the mutual market access mechanism between the stock markets of China and Hong Kong went deeper and the investment sentiment improved, Hong Kong’s IPO and secondary market began to recover this year. First Capital Securities will capitalise on market opportunities to carry on developing its own strengths. It will also take initiatives to expand securities trading related businesses, so that investors can enjoy our well-established investment channels and seize investment opportunities with the financial assistance provided by CFCG’s education investment segment.”