Cirrus Aircraft’s HKD1.5 billion (USD193 million) debut on the HKEX, the second largest IPO in Hong Kong this year to date, received legal advice from eight firms.
A&O Shearman, with Hong Kong-based partners Wanda Woo, Won Lee and Li Chen leading the team, advised Cirrus Aircraft on both Hong Kong and US law. Partner Larry Crouch in New York provided tax advice. Partner Lorna Chen in Hong Kong and partner Anil Motwani in Singapore counselled on Investment Company Act-related issues, while New York partner John Cannon advised on incentives matters.
Jia Yuan Law Offices acted as PRC counsel, including founding partners Yan Yu and Xu Ying, senior partner Wei Pei, and partner Du Qian.
Maples Group served as Cayman Islands counsel for Cirrus Aircraft.
Three additional legal advisers were involved. Faegre Drinker provided advice on US law for Cirrus Aircraft’s US operations, Hogan Lovells advised on US regulatory and international sanctions law, and Gravel & Shea acted as Vermont counsel.
In 2020, the Aviation Industry Corporation of China (AVIC), the controlling shareholder of Cirrus Aircraft, was identified by former US president Donald Trump as a Chinese military-industrial company, resulting in restrictions on US investors.
Although Cirrus Aircraft, the world’s largest private jet manufacturer, was not directly affected, the company has faced various national security restrictions since 2011 due to its acquisition by China Aviation Industry General Aircraft, a subsidiary of AVIC.
A national security agreement between the buyer, seller and the US defence department imposed requirements that would continue to be enforced, including providing advance notice to the Pentagon regarding sponsored employment or visitor visas for non-US nationals, maintaining visitor logs for monthly inspection, requiring the director of security to be a US citizen, and allowing unannounced site visits and inspections by the Pentagon.
Even the five cornerstone investors in the IPO have ties to government entities: the Structural Reform Fund II is backed by the State-owned Assets Supervision and Administration Commission, and the other four companies are operated by the Wu Xi, Changshu and Taicang city governments in Jiangsu province.
Slaughter and May served as Hong Kong and US counsel to the solo sponsor, CICC, with a team led by senior partner Benita Yu, and partners John Moore and Chen Jing.
Partners Wang Lixin, Wang Jianxue, Ye Xiaobei, Zhao Zhen and Chen Qiansi at King & Wood Mallesons acted as CICC’s PRC counsel.
