Deacons advises on IPO for leading residential elderly care home operator

Deacons has advised the sole sponsor Guotai Junan Capital Limited and the underwriters in relation to the Main Board IPO of Pine Care Group Limited in Hong Kong.

Pine Care is a leading operator of homes for the elderly offering a comprehensive range of residential care services. According to a market research report, in terms of revenue in 2015 Pine Care was the second largest private operator of these homes in Hong Kong.

Pine Care published its IPO prospectus on 27 January 2017. The gross proceeds from the share offer to Pine Care and one of its controlling shareholders will amount approximately to HK$179 million (subject to exercise of the over-allotment option).

There are two cornerstone investors who will take up approximately 48.4% of the offer shares in aggregate. The first is Yada International (HK) Limited, a wholly-owned subsidiary of Yada International Holdings Limited, which in turn is held by Beijing Harmony Growth Investment Center LP (北京和諧成長投資中心(有限合夥), managed by IDG Capital; and Tianjin Sequoia Yada Holdings Investment LP (天津紅杉雅達股權投資合夥企業(有限合夥) managed by Sequoia Capital China. The second is China Oceanwide International Master Fund, managed by an indirectly wholly-owned subsidiary of China Oceanwide Holdings Group Co Ltd (中國泛海控股集團有限公司).

Pine Care will list on the Hong Kong Stock Exchange on 15 February 2017.

Deacons’ team is led by corporate finance partner Sabrina Fung.