Chervon’s HK$3.14 Billion Hong Kong IPO

Simpson Thacher represented Chervon Holdings Limited on the deal, while Warner Norcross + Judd LLP represented Chervon North America, Inc. Sullivan & Cromwell advised the underwriters.

Chervon Holdings Limited has completed its initial public offering and Rule 144A and Regulation S offering. Chervon offered an aggregate of 71,916,000 shares prior to the exercise of the underwriters’ overallotment option. The base offering size was HK$3.14 billion (approximately US$402 million). The shares of Chervon are listed on the Main Board of the Hong Kong Stock Exchange. CICC and Citi acted as joint sponsors, joint global coordinators, joint bookrunners and joint lead managers.

Chervon is a global provider of power tools and outdoor power equipment (“OPE”). Focusing on innovation, especially lithium-ion battery system technology, Chervon has achieved significant scale and rapid growth. According to industry report, Chervon ranked the 13th and accounted for approximately 1.9% of the combined global power tool and OPE markets by revenue in 2020.

The Simpson Thacher team for the transaction included Christopher Wong (Picture), Yi Gao, Marjory Ding, Kai Fan, Stephanie Chan, Justin Taiyang Guo and Michelle Chiu (Capital Markets); and Michael E. Mann and Scott Grundei (Tax).

The S&C team was led by Kay Ian Ng and Ching-Yang Lin in Hong Kong and Gwen Wong in Beijing. Wally Jones, Tracey Russell and Joon Seok Hong advised on matters related to financial services. Jeff Hochberg and Saul Brander advised on tax-related matters.

The Warner team for this transaction included Gordon Toering, Bruce Young, Jonathan Kok, Corinne Sprague and Daniel Persinger.

 

Involved fees earner: Stephanie Chan – Simpson Thacher & Bartlett; Marjory Ding – Simpson Thacher & Bartlett; Kai Fan – Simpson Thacher & Bartlett; Yi Gao – Simpson Thacher & Bartlett; Scott Grundei – Simpson Thacher & Bartlett; Justin Guo – Simpson Thacher & Bartlett; Michelle Chiu – Simpson Thacher & Bartlett; Michael Mann – Simpson Thacher & Bartlett; Christopher Wong – Simpson Thacher & Bartlett; Saul Brander – Sullivan & Cromwell; Jeffrey Hochberg – Sullivan & Cromwell; Waldo Jones Jr. – Sullivan & Cromwell; Ching-Yang Lin – Sullivan & Cromwell; Kay Ian Ng – Sullivan & Cromwell; Tracey Russell – Sullivan & Cromwell; Joon Seok Hong – Sullivan & Cromwell; Gwen Wong – Sullivan & Cromwell; Jonathan Kok – Warner Norcross & Judd; Daniel Persinger – Warner Norcross & Judd; Corinne Sprague – Warner Norcross & Judd; Gordon Toering – Warner Norcross & Judd; Bruce Young – Warner Norcross & Judd;

Law Firms: Simpson Thacher & Bartlett; Sullivan & Cromwell; Warner Norcross & Judd;

Clients: BOCOM International Securities Ltd; Chervon North America, Inc. ; Chevron Corporation; China International Capital Corporation Limited (CICC); Citibank; CMB International Capital Limited; HSBC;

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Author: Youness Semri