DeHeng Advised Modern High-tech on Listing
on the SZSE ChiNext Market as One of the First Batch
of Enterprises Accepting the Pilot Registration-based IPO System
2020-08-25
On August 24, 2020, Guangdong Modern High-tech Fiber Co., Ltd. ("Modern High-tech", stock code: 300876) was officially listed on the ChiNext Market of Shenzhen Stock Exchange as one of the first batch of enterprises accepting the pilot registration-based IPO system.
Founded in 2013, Modern High-tech is specialized in the research and development, production and sales of polypropylene fiber. The main product is polypropylene filament which is mainly used in luggage webbing, water pipe cloth cover, door and window tops and garments, etc. in the civil field, as well as industrial filter cloth in the industrial field. According to the statistics of China Chemical Fibers Association, in 2017, 2018 and 2019, the output and market share of Modern High-tech were among the highest in the Chinese polypropylene filament industry.
For the initial public offering, it issued 24 million shares at RMB 20.09 per share, and raised RMB 482.16 million which will be mainly spent on the annual output of 23,000 tons of polypropylene fiber expansion project, research and development center construction project and replenishing working capital.
Modern High-tech is among the first batch of companies accepting the pilot registration-based IPO system to go public on ChiNext. Since its first application in June 2019, this IPO project has undergone amendments to the Securities Law, COVID - 19 outbreak, the reform of the ChiNext registration system, and the revision of relevant rules of the ChiNext, etc., and it was among the first batch of IPO applications transferred to the Shenzhen Stock Exchange after passing the preliminary review by the China Securities Regulatory Commission. With the short transition period, tight application time, and no precedent for the content and form of some application documents, the transferring application process gave a greater challenge to the work of the project team. DeHeng has provided whole-process legal services for Modern High-tech's IPO since 2016, covering the listing application and review, and has issued more than 30 legal documents for it including lawyers' work reports, legal opinions, supplementary legal opinions, and special verification opinions, etc.
As the issuer's legal counsel, the DeHeng team was led by partner Wang Xian'an, with primary support from lawyers Yang Yong and Deng Di, and paralegals Xu Endi and Yu Yuan. They offered whole-process legal services, and worked closely with the sponsor Sinolink Securities and the audit agency Dahua Certified Public Accountants (Special General Partnership), and provided professional, efficient and high-quality legal services for the IPO.
