Fox Capital Partners: Sustainable Energy IPO Talks Break Deadlock

Top Quote Fox Capital Partners says it has resolved the deadlock in investor negotiations that threatened to derail a sustainable energy IPO. End Quote
  • (1888PressRelease) October 18, 2015 - Shenzhen, China-based technology and alternative energy-focused broker-dealer, Fox Capital Partners says it has finally broken the deadlock that had threatened to derail negotiations that will see the firm named as lead underwriter on an important sustainable energy company's stock market floatation in 2016.

    "Consensus was reached with the company's principals and the representatives of one of its financial backers," said Ollie Seigler, head of energy research at Fox Capital Partners. "The lockup period has been shortened to 3 months but the investor has agreed to accept ordinary shares rather than continuing its push for the preference shares it had initially insisted on."

    The compromise paves the way for discussions to move on to the issue of where the listing will take place. The current ban on new IPOs on both the Shenzhen and Shanghai Composite bourses presents a problem and, although Hong Kong's Hang Seng Index is a potential solution, the costs associated with floatation on that exchange are considerably higher.

    "The company's financial backers would be loath to see their returns diminished by the higher costs associated with a listing on the Hang Seng Index. It's a far more developed market place with much tighter regulatory requirements," said Johann Vries, Fox Capital Partners' lead negotiator at the talks.

    "Until the CSRC (China Securities Regulatory Committee) decides that the stock rout that hit mainland equities is over, we can't really expect any movement on the ban. Frankly, it's likely that they'll be looking to phase out some of the other emergency measures they introduced before allowing more IPOs to soak up liquidity," Vries added.

    About Fox Capital Partners
    Fox Capital Partners is a successful, independent investment management practice established in China and headquartered in Shenzhen. Our highly-qualified professionals advise on a wide array of wealth accrual, preservation and portfolio management solutions aimed at affluent individuals and families in Asia and elsewhere.

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