CMS Hasche Sigle Advises ZhongDe Waste Technology AG on the First Chinese Prime Standard IPO on the German Stock Exchange

2007-07-06 08:28 1205

SHANGHAI, China, July 6 /Xinhua-PRNewswire/ -- As of today ZhongDe Waste Technology AG (with its subsidiaries "ZhongDe Group") will be traded on the Prime Standard at the Frankfurt Stock Exchange as the holding company of a company which operates solely in China. This was the first public offering in Germany of shares in a company which operates in China and the first indirect listing in the highly regulated Prime Standard of the German Stock Exchange. The ZhongDe Group is a leading manufacturer of waste incineration plants for clinical and household waste in China. Since 1996 it has sold over 170 waste incineration plants to customers in 13 provinces throughout China, 112 of which were sold in the last three business years alone. The domicile of the holding, which manages the business in China, is Hamburg.

Including the Greenshoe options up to 4,185,264 no-par value ordinary bearer shares have been offered for sale by way of a public offering in Germany and Luxembourg and by way of private placements to institutional investors outside Germany, Luxembourg and the USA. Of these up to 3 million shares stem from a capital increase and up to 639,360 from shares held by various selling shareholders. Up to 545,904 further shares were earmarked for a Greenshoe option. At EUR 26 per share the placement price was at the upper end of the price range of EUR 23-26.

ZhongDe’s IPO heralds a new direction for Chinese investments abroad and underlines the importance of the Frankfurt Stock Exchange and the procedural and cost advantages in direct competition to other major stock exchanges, such as London and New York. Historically, most Chinese companies have sought listings on US exchanges, but especially for medium-sized firms an IPO in the US is now often perceived to be too costly. Being Europe’s biggest market, Germany presents itself as an attractive alternative for Chinese companies planning to go public on a stock exchange outside China. Frankfurt offers Chinese companies an excellent entry point to the European capital market through its low capital costs and high liquidity. It is expected that quite a number of Chinese companies will list on the Frankfurt Stock Exchange in the coming months.

An experienced team of lawyers from CMS Hasche Sigle operating in close cooperation with the CMS office in Shanghai acted as issuer’s counsel, providing ZhongDe Waste Technology with comprehensive advice on the IPO. The team drafted the prospectus in English and handled the BaFin clearance procedure.

Sal Oppenheim jr. & Cie. KGaA was the global coordinator and sole bookrunner and was advised by Dewey Ballantine acting as underwriters’ counsel. Sal. Oppenheim and the Bank of China International acted as joint lead managers for the IPO with CLSA Asia-Pacific Markets as co-lead manager. The selling agents were Bayerische Landesbank, comdirect bank AG and DAB bank AG.

Advisers to ZhongDe Waste Technology AG

CMS Hasche Sigle

Dr Henrik Drinkuth, partner, Hamburg (Capital Markets and Stock

Corporation Law, Lead Partner)

Dr Andreas Zanner, partner, Frankfurt, (Capital Markets and Stock

Corporation Law, Lead Partner)

Dr Ulrike Gluck, partner, Shanghai (Chinese Law)

Dr Martin Kniehase, Frankfurt (Capital Markets)

Holger Hirschberg, Frankfurt (Capital Markets)

Dr Rupert Doehner, Frankfurt (Stock Corporation Law)

Benjamin Kroymann, Frankfurt (Chinese Law)

Dr Hilke Herchen, Hamburg (Stock Corporation Law)

Jeanette Yu, Shanghai (Chinese Law)

Karen Wang, Shanghai (Chinese Law)

Kevin Wang, Shanghai (Chinese Law)

David Yuan, Shanghai (Chinese Law)

Dr Falk Lichtenstein, Shanghai (Chinese Law)

Ann Chen, Shanghai (Chinese Law)

About CMS Hasche Sigle:

CMS Hasche Sigle is one of the leading German law firms with more than 480 lawyers. It covers the entire area of commercial law and provides legal advice to major German and international companies from a wide spectrum of industry. It has offices in Berlin, Cologne, Duesseldorf, Frankfurt, Hamburg, Leipzig, Munich, Stuttgart, Chemnitz, Dresden, Brussels, Belgrade, Moscow and Shanghai.

CMS Hasche Sigle is a partnership of lawyers and tax consultants; for register details / list of partners see

CMS Hasche Sigle is a member of CMS, an alliance of leading independent European law firms. With over 595 partners, a total of 2,000 lawyers and tax consultants and around 4,200 support staff we advise our clients at commercial locations in 48 business centres in Europe and further afield on legal and tax issues.

In addition to CMS Hasche Sigle, the following firms are also members of the CMS alliance: CMS Adonnino Ascoli & Cavasola Scamoni (Italy), CMS Albinana & Suarez de Lezo (Spain), CMS Bureau Francis Lefebvre (France), CMS Cameron McKenna LLP (Great Britain), CMS DeBacker (Belgium), CMS Derks Star Busmann (the Netherlands), CMS von Erlach Henrici (Switzerland) and CMS Reich-Rohrwig Hainz (Austria). CMS has 58 offices in 25 countries around the world.

For further information on CMS Hasche Sigle see and on the CMS alliance see .

Source: CMS Hasche Sigle