Senior Public Relations Manager
Senior Public Relations Coordinator
WHAT'S NEXT FOR CAPITAL MARKETS IN CHINA? JUST ASK PILLSBURY
October 28, 2010
Shanghai—China has surpassed Japan as the second-largest economy in the world after the United States, and the competition for corporate legal work in China has never been fiercer. Pillsbury Winthrop Shaw Pittman, a market leader in China among AmLaw 100 firms, has been a major beneficiary of that growth, increasing its revenues for China-related matters by 183 percent since 2008.
Capital markets is driving much of that growth, particularly when it comes to alternative public offerings (APOs) and PIPE financings. So far this year, the practice, led by Tom Shoesmith, Lou Bevilacqua, Joe Tiano and Greg Pickrell in the United States and Scott Kline and Woon-Wah Siu in China have advised on more than 17 PIPE financings that raised more than $190 million. As a result, the firm ranks 2nd among law firms for counseling issuers on PIPE transactions according to PrivateRaise, a service of DealFlow Media.
In addition, during 2010, Pillsbury's China team advised its clients on a total of six registered direct or confidentially marketed public offerings that raised a total of more than $90 million, ranking Pillsbury 4th among issuer counsel in these types of offerings according to PrivateRaise.
In the last two years, Pillsbury's China team, which consists of 20 attorneys not only on the ground in Shanghai, but also in Washington, DC, New York, Silicon Valley, San Francisco, Los Angeles and London, has closed more than 50 matters valued in excess of $1.2 billion. In June, this commitment to capital markets investing resulted in Pillsbury being named 2010 Investor Counsel of the Year by the China's leading private equity magazine, TopCapital.
Most recently, for example, Pillsbury advised a Chinese motorcycle and small engine manufacturer, Jinhao Motor Co., in a going-public transaction in the U.S., raising $30 million, the fifth-largest PIPE ever completed concurrently with a RTO. Jinhao plans to use that funding to pursue its goal of being a leading player in the electric car market.
"Chinese companies are carefully looking at emerging opportunities in the environmental, energy and transportation sectors, all areas in which the Chinese government has struggled with over the years. Ironically, China's burgeoning corporate sector, so long repressed, is now developing innovative solutions not just for that nation's strained natural resources, but to benefit countries, throughout the world, including the United States," said Kline, who advises Jinhao.
Other recent matters Pillsbury's China practice has advised on include:
- A $60 million underwritten follow-on offering for Pillsbury client China Security & Surveillance Technology, Inc. (NYSE: CSR)
- A $20 million registered direct offering for Pillsbury client China Information Technology Inc. (NASDAQ: CNIT)
- A $20 million registered direct offering and a subsequent $17.5 million registered direct offering for Pillsbury client CAMAC Energy Inc. (AMEX: CAK)
- A $9.2 million registered direct offering for Pillsbury client China Advanced Construction Materials (NASDAQ: CADC)
- An RTO and $10 million PIPE for Pillsbury client China Power Technology, Inc. (OTCQB: CNPL)
- An RTO and $5 million concurrent PIPE for Pillsbury client China Packaging Group, Inc. (OTCQB: CPAK)
- A $15 million PIPE for China Broadband, Inc. (OTCQB: CBBD.)
In addition, Pillsbury has represented many of the leading underwriters involved in China-related offerings, including Jefferies, Piper Jaffray, Stifel Niclaus Weisel, Oppenheimer & Co., Roth Capital Partners, Rodman & Renshaw and Brean Murray Carret & Co.
"Pillsbury's commitment to China is as strong as ever. China is an important market to the world economy and to our clients. Pillsbury will continue to grow in China with excitement and enthusiasm in a manner to best serve our clients and meet their worldwide objectives," said Pillsbury Firm Chair Jim Rishwain.
Pillsbury Winthrop Shaw Pittman LLP is a full-service law firm with market-leading strengths serving the energy, financial services, real estate and technology sectors, and increasingly healthcare and education. Based in the world's major financial and technology centers, Pillsbury counsels clients on global corporate, regulatory and litigation matters. We work in multidisciplinary teams that allow us to anticipate trends and bring a 360-degree perspective to complex business and legal issues—helping clients to take greater advantage of new opportunities and better mitigate risk. This collaborative work style helps produce the results our clients seek.