DEALS
Zhong Lun Advises Rainbow Department Store Co., Ltd. on Shenzhen IPO and Listing
Zhong Lun Advises Rainbow Department Store Co., Ltd. on Shenzhen IPO and Listing
On February 8, 2010, Rainbow Department Store Co., Ltd. obtained approval from the China Securities Regulatory Commission to launch an IPO and get listed on the Shenzhen Stock Exchange Market.
Zhong Lun Law Firm formed a legal service team to advise Rainbow Department Store Co., Ltd. on the IPO. Partners Qian Boming and Zhang Jijun led the team which also comprised associates Xu Huamei, Nian Fubing and Qian Jinsen. Associates Yang Hui and Xu Zhigang from Shenzhen office also gave a helping hand to the team. The underwriter was China Merchants Securities Co., Ltd.
Rainbow Department Store Co., Ltd. is a well-known chain company in China and has been listed as one of Top 100 Chain Companies in China for eight years in a row. Currently the company has 35 department stores in major cities across China, such as Shenzhen, Nanchang, Xiamen, Dongguan, Huizhou, Jiaxing, Fuzhou, Changsha, Beijing, Suzhou, and Hangzhou with business areas of 848,600 square meters, and two franchising stores.
The company plans to issue 50.1 million shares on the Shenzhen Stock Exchange to increase the total number of shares to 400.1 million. The issuance is meant to add investment in seven newly established department stores, acquire some commercial properties and revamp three stores. The investment is estimated to hit RMB1.056 billion.
