DeHeng Advised on the spin-off and listing of China Res Mixc

on the Main Board of HKEX

2020-12-09

Following a successful spin-off from its parent company China Resources Land Limited (stock code: 1109.HK, "CR Land"), China’s leading property management and commercial operational service provider, China Resources Mixc Lifestyle Services Limited (stock code: 1209.HK, "China Res Mixc"), listed on December 9, 2020 on the main board of the Stock Exchange of Hong Kong ("HKEX"). For the initial public offering, China Res Mixc issued 550 million shares worldwide at the price of HKD 22.30 per share. After deducting the underwriting commission payable and other expenses for the global offering, it managed to raise more than HKD 12 billion, a new record of fund raising by China property management companies in the history of HKEX. 

As one of the major contributors of CR Group and CR Land, China Res Mixc provides property management and value-added services to a growing portfolio of commercial properties comprising shopping malls and office buildings, and has become an industry icon for China’s residential and commercial properties management. As of June 30, 2020, the GFA of the residential and commercial properties under the property management services of China Res Mixc was approximately 106.6 million sq.m. According to a Frost & Sullivan report, it ranked fifth in terms of property management service revenue in 2019 among all PRC property management companies, and second in terms of shopping mall property management service revenue in 2019 among all PRC shopping mall operational service providers.

As the PRC legal counsel for the sponsors and underwriters, the DeHeng team from Shenzhen Office, led by senior partners Su Qiyun and Liu Shuang, worked closely with the issuer and sponsors, underwriters and their Hong Kong legal counsels as well as other professional parties, and provided a series of professional, comprehensive and efficient legal services that contributed to the successful listing. Other team members that also participated in the overall legal services include Huangfu Tianzhi, Wang Yang and Zhang Zhipeng, Wang Jinling, Ma Ling, Li Weiyi and Rao Yifan.

The global offering of China Res Mixc marked another milestone for DeHeng’s participation in the Hong Kong IPO of the top-ranking China property management companies. Previously DeHeng had advised on the listing of Country Garden Services (6098.HK) in 2018, Poly Property Services (6049.HK) in 2019 and Jinke Services (9666.HK) in 2020.