DeHeng Advised Smoore on Listing on the HKEX Main Board

2020-07-10

On July 10, 2020, Smoore International Holdings Limited went public on the main board of Hong Kong Stock Exchange under the stock code of "6969. HK." At HKD 12.40 per share, Smoore issued approximately 574 million shares before the exercise of overallotment option, raising a net amount of HKD 6.863 billion. On the first trading day, the stock opened at HKD 28 per share and closed at HKD 31 per share, up 150% from the offering price and bringing its market capitalization to HKD 178.049 billion.

According to a Frost & Sullivan report, in terms of revenue in 2019, Smoore is the world's largest manufacturer of electronic atomizers, taking up 16.5% of the global market share. Through innovative and leading technology solutions, the company currently operates two main business segments: the research, design and manufacturing of closed electronic atomizers and electronic atomizer components, and research, design, manufacturing and sale of own-brand open electronic atomizers or open electronic atomizer APV. Its high-quality products and innovative product line have won the company global recognition.

While providing electronic atomizer products for global users, it has also begun to explore new development space of atomizer technology. In April this year, Smoore entered into a material transfer and research agreement with AIM Immuno Tech to study the efficacy of the inhalation delivery device using Ampligen, AIM's flagship drug, in treating COVID-19.

Led by partner Liu Zhenguo, DeHeng lawyers have been serving as the legal counsel of Smoore since 2014, and provided whole-process legal services for its capital operations, including the acquisition of its domestic operating entity by EVE Energy (300014), a GEM listed company on Shenzhen Stock Exchange, its listing on the NEEQ, transfer and fund raising on NEEQ, the increase in equity by controlling shareholder Mr. Chen Zhiping, the delisting from NEEQ and this offering on Hong Kong Stock Exchange.

As the issuer's domestic lawyer, the DeHeng team was led by partner Pu Hong, with primary support from lawyers Zheng Jie, Sui Xiaojiao and Li Lele. They provided professional, efficient and high-quality legal services for the issuer's red-chip restructuring, Pre-IPO financing and the IPO. They worked closely with the issuer and its overseas legal counsel, the sponsor and its domestic and foreign legal counsels, and won their high praises and trust with their down-to-earth work attitude and professionalism.