Micro-drive systems manufacturer Zhaowei Machinery & Electronics listed on the HKEX on 9 March, raising HKD1.9 billion (USD243 million), which completes the company’s A+H dual listing in the Chinese mainland and Hong Kong, and follows its debut on the SZSE’s ChiNext board in 2020. Baker McKenzie, FenXun Partners, AllBright Law Offices, Hogan Lovells, Ashurst, Luther, Fangda Partners, Commerce & Finance Law Offices and DLA Piper provided legal support.
The transaction comprised 26.7 million H shares priced at HKD71.28 each, with the public tranche oversubscribed 1,535 times. China Merchants Securities and Deutsche Securities acted as joint sponsors.
Cornerstone investors include Hillhouse’s HHLRA, Mirae Asset Securities (HK), Perseverance Asset Management, Oakwise Growth Fund, Da Cheng International, Taihu Golden Valley and GF Fund HK.
According to Frost & Sullivan, Zhaowei was the largest provider of integrated micro transmission and drive systems products in China and the fourth-largest globally as measured by 2024 revenue.
Its self-developed “ZW Hand” system, a strategic product that extends the company’s micro-drive technology into humanoid robotics, features 17 to 20 degrees of freedom and can replicate the fine movements of the human hand.
Baker McKenzie acted as Zhaowei’s Hong Kong and US legal counsel, led by partners Dan Ouyang and Winfield Lau, as well as partners Ronnie Li and Bao Zhenzhen from its associate firm FenXun Partners.
AllBright Law Offices acted as the issuer’s PRC legal counsel, with partners Su Tao, Fang Haitao and Lou Yonghui leading the team. Hogan Lovells advised on international sanctions law, while Ashurst and Luther advised, respectively, on US outbound investment laws and German law.
Fangda Partners acted as the underwriters’ Hong Kong and US legal counsel, led by partner Colin Law. Commerce & Finance Law Offices counselled on PRC law, led by partners Liu Wen and Yu Dan. DLA Piper advised on US outbound investment rules.
The prospectus stated that the proceeds from the listing would be used for R&D and expansion of its product portfolio, enhancing production efficiency, and pursuing global strategic co-operation, investment and M&A.
Headquartered in Shenzhen, Zhaowei was founded in 2001 and focuses on the research and manufacture of precision drive systems. Its products serve sectors including intelligent vehicles, consumer technology, medical technology and embodied robotics, providing clients with customised solutions from smart drive design to component manufacturing and assembly.
