Active Bookrunner role on one of the largest US IPOs of a Chinese company

HSBC acted as an Active Joint Bookrunner (top line role) on the USD2.4 billion IPO by Lufax Holding Ltd on the New York Stock Exchange. At the base offer size, this transaction is the largest US Fintech IPO and the fourth-largest US IPO (second largest if greenshoe is fully exercised) of a Chinese company to date. The deal was priced on 29 October 2020, and the stock started trading the following day.

This transaction marks the third event deal on which HSBC has assisted Lufax, following the C-round equity raising in 2018 and a syndicated loan in early 2020. It is also the fourth equity transaction in the last three years that we have completed for the Ping An Group, showcasing our strong coverage and continuous engagement with the client.

Lufax is a leading technology-empowered personal financial services platform in China and part of the Ping An Group. It adopts a “hub-and-spoke” business model, connecting borrowers with funding partners and investors with wealth management product providers.

Key highlights of the transaction:

  • HSBC assisted in delivering a successful IPO for Lufax, despite a complicated market environment due to COVID-19, uncertainties around the US elections and a robust IPO pipeline
  • HSBC outperformed the majority of the Active Bookrunners and was second in underwriting contribution, which generated momentum to the book-building and allowed the transaction to price at the top end of the range
  • Our Active Joint Bookrunner role adds to our strong momentum in US IPOs, following eight bookrun IPOs this year, and highlights our ability to taFourth Joint Bookrunning ke a leadership role in US IPOs

Our first Sponsor role on a Chinese onshore A-share equity transaction

HSBC Qianhai Securities (IBCN) acted as Sole Sponsor and Joint Lead Underwriter for the RMB7 billion (~USD1 billion) A-share private placement for Henan Shuanghui Investment & Development Co, Ltd. This is the first onshore China equity transaction on which HSBC has acted as Sponsor.

The transaction was launched on the back of a strong share price performance (+43 per cent), supported by a well-received equity story. The final book was 1.5 times subscribed, despite market volatility post China Securities Regulatory Commission's approval. HSBC's contribution to the transaction demonstrates our unique global sales coverage competitive advantage in the A-sharemarket. The transaction is Shuanghui’s first equity fundraising transaction in 18 years. Amid COVID-19 challenges, as the Sponsor, HSBC helped Shuanghui execute this transaction with precision and speed, further cementing our strategic partnership with the client, following our role as their Independent Financial Advisor on the high profile RMB39.1 billion M&A transaction in 2019.

Founded in Henan in 1998, Shuanghui is the number one meat producer in China, and a member company of WH Group, the largest pork company in the world. Shuanghui represents one of China's most renowned names in the consumer and retail sector.

Key highlights of the transaction:

  • The largest ever A-share equity follow-on financing in the food and beverage sector, and the fifth largest A-share non-FIG* private placement in 2020 to-date
  • One of the private placements with the shortest execution time year-to-date, evidencing HSBC's superior quality of work, client service and seamless communication with the regulator
  • This is HSBC’s first China onshore Sponsor transaction, strengthening our A-share ECM** track record and consumer sector credentials, with onshore and offshore teams working closely together. A testament to HSBC's unique global distribution capability and broad investor coverage.

Fourth Joint Bookrunning IPO mandate completed for a technology company in the US in 2020

HSBC acted as Joint Bookrunner on the USD740 million initial public offering (IPO) of McAfee, Corp. The transaction represents a re-IPO of McAfee, which was a publicly traded company from 1999 until it was acquired by Intel Corporation in 2011 for USD7.7 billion. In 2017, a consortium of private equity firms led by TPG Global, LLC acquired a controlling stake in McAfee (with Intel retaining a minority stake), valuing the Company at USD4.6 billion.

Following the pricing of the IPO, the orderbook was multiple times oversubscribed, with high quality conversions by the fourth day of a six-day virtual management roadshow. The stock opened for trading on 22 October 2020. The Joint Bookrunning mandate was awarded to HSBC based on the strength of our CMB relationship; our comprehensive sector coverage of the enterprise technology landscape; and our strong institutional relationship with TPG. We demonstrated our ability to integrate all other points of connectivity with the client across HSBC.

McAfee is a pioneer and global leader, protecting consumers, enterprises and governments for over 30 years from cyber-attacks with integrated security, privacy and trust solutions. It has one of the industry's most comprehensive cybersecurity portfolios, offering protection for over 30 million subscribers, 600 million consumer devices, and many of the largest governments and enterprises worldwide, including 86 of the Fortune 100. McAfee was founded in 1987 and is headquartered in Santa Clara, California.

Key highlights of the transaction:

  • Fourth Joint Bookrunning IPO mandate HSBC has completed for a technology company in the US in 2020, following our participation in the IPOs of Rackspace (August 2020), Jamf (July 2020) and Dun & Bradstreet (June 2020), in addition to our role as Financial Advisor on the Direct Listing of Palantir (September 2020)
  • The transaction is franchise-enhancing for our Technology Investment Banking Coverage, Financial Sponsors and Equity Capital Markets platforms in the US, made possible by continued seamless collaboration and communication between teams
  • Continues the momentum of our Americas ECM franchise and highlights our ability to act in a meaningful role in US equity capital market transactions

*Financial Institution Group
**Equity Capital Markets

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