O’Melveny Represents Underwriters in US$248.4 Million Initial Public Offering of China Real Estate Information CorporationNovember 02, 2009
FOR IMMEDIATE RELEASE
O'Melveny & Myers LLP
O'Melveny & Myers LLP
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BEIJING, CHINA - NOVEMBER 2, 2009 – O’Melveny represented Credit Suisse Securities (USA) LLC and UBS AG as joint bookrunners, and BofA Merrill Lynch as co-manager, in the US$248.4 million initial public offering of American Depositary Shares (“ADSs”) of China Real Estate Information Corporation (NASDAQ: CRIC). CRIC sold 20.7 million ADSs at US$12 per ADS, including 2.7 million ADSs sold when the underwriters exercised their over-allotment option in full.
The transaction was unique in many respects, involving a carve out listing of the subsidiary of an already US-listed parent, combined with a material acquisition and executed on one of the fastest US IPO timelines for a Chinese-based US issuer (less than 5 months). CRIC is a leading provider of real estate information and consulting services in China with a presence in over 50 cities across China. Before the offering, CRIC was a subsidiary of NYSE-listed E-House (China) Holdings Ltd. (NYSE: EJ), a leading real estate services company that listed on the NYSE in 2007. In addition, in connection with the offering, CRIC also acquired the online real estate business of Nasdaq-listed SINA Corporation (NASDAQ: SINA), China’s leading Internet portal and one of China’s most well-known Internet brands. The acquisition was consummated upon the closing of CRIC’s IPO with SINA receiving a 33.4% ownership stake in CRIC following the offering. E-House retains control with a 50.04% ownership stake in CRIC after the offering. The trading price of CRIC’s ADSs shot up 18% on the first day of trading giving CRIC an approximately US$1.96 billion valuation.
The O’Melveny team was led by Beijing partner David Roberts, and included associate Tom Hall (BJ), attorney Zhiyuan Zhu (BJ) and legal consultants Le Yi (SH) and Scott Wang (SH). Shanghai partner Kurt Berney provided additional senior support, and partners Martin Dunn and Robert Plesnarski and associate Rebekah Toton, all of the Washington, DC office, advised on matters relating to SEC strategy in light of a particularly aggressive time table as well as other complex securities law issues. Washington, DC partner Barbara Stettner and associate Bjorn Hall advised on FINRA-related matters, and partner Larry Sussman (BJ) and associates Anita Choi (HK) and Cindy Huang (BJ) advised on tax-related matters.
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