Sunac Services Holdings Limited’s HK$9.21 Billion IPO

Sidley Austin LLP advised Sunac Services Holdings Limited on the deal.

Sunac Services Holdings Limited (HKEX: 1519) (Sunac Services) announced its initial public offering (IPO) on the Main Board of the Stock Exchange of Hong Kong (HKEX). Assuming the exercise in full of the over-allotment option, the offering will raise a total of HK$9.21 billion (US$1.19 billion). HSBC Corporate Finance (Hong Kong) Limited and Morgan Stanley Asia Limited acted as joint sponsors in the transaction.

Sunac Services is a spinoff of Sunac China Holdings Limited (Sunac China) (HKEX: 1918). In the global offering and separate listing of Sunac Services, Sunac China announced the declaration of a special dividend by way of a distribution in specie of Sunac Services to the qualifying shareholders of Sunac China. Meanwhile, Sunac Services received strategic cornerstone investments from Tencent, Magical Carpet Limited (which is funded by funds advised or managed by IDG Capital), Hillhouse Funds, and Snow Lake Funds.

Sunac Services is the fastest-growing large-scale property management service provider in China. According to China Index Academy, its overall growth rate — measured by the average of annual growth rates of gross floor area (GFA) under management, contracted GFA, revenue, and profit for the year — ranked highest compared with large-scale, top-100 property management companies in 2019.

The Sidley team was led by partners Sherlyn Lau (Picture) and Carrie Li. Other team members also included counsels Julia Zhu and Douglas Tsang, China advisor Joy Chen, associates Jacob Zhao and Sophie Gu, legal manager Joanna Tong, senior legal assistants Alan Louey, Angie Fan, and Wendy Ho, and legal assistants Tina Wong and Jianwen Wang.

Involved fees earner: Joy Chen – Sidley Austin LLP; Sophie Gu – Sidley Austin LLP; Sherlyn Lau – Sidley Austin LLP; Carrie Li – Sidley Austin LLP; Douglas Tsang – Sidley Austin LLP; Jacob Zhao – Sidley Austin LLP; Julia Zhu – Sidley Austin LLP;

Law Firms: Sidley Austin LLP;

Clients: Sunac Services Holdings Limited;

Author: Michael Patrini