Leading international law firm Herbert Smith Freehills has advised Newborn Town Inc. (09911.HK) on completion of a HK$347 million (US$44.5 million) top-up placing of new shares on the Stock Exchange of Hong Kong.
Newborn Town Inc. focuses on the global open social networking sector, as well as emerging modes in social networking including video and audio formats, creating a range of diversified social networking products including video social networking, audio social networking and live-streaming social networking. Its representative products include Yumy, MICO and YoHo, which are highly popular in areas such as Middle East, North America, Southeast Asia and South Asia. The company went public on the Stock Exchange of Hong Kong in December 2019 and acquired Beijing Mico World Technology Co., Ltd. in July 2020 as part of its expansion into overseas social networking markets. The firm advised Newborn Town on both transactions.
The placement comprises 92,366,000 new shares at a price of HK$3.80 per share. These shares account for approximately 8.41% of the existing issued share capital of Newborn Town and approximately 7.75% of the issued share capital as increased by the placement. Proceeds from the placement and subscription will be used for development of the company's social networking and gaming business as well as for potential acquisitions and pursuing strategic alliances.
Beijing partner Isaac Chen led a team advising Newborn Town on the placement, assisted by associate Bryan Zhu and legal assistant Aiye Jia.
"Our congratulations to Newborn Town, with whom we have a solid client relationship since its public listing, on this latest placement,” said Isaac. “The success of the placement shows the continued strength of the Hong Kong capital markets for emerging TMT companies."
"Our firm excels in supporting Chinese TMT clients on high-profile transactions. We look forward to even stronger growth of Chinese companies in the global capital markets in the Year of Tiger," said Isaac.
史密夫斐尔北京办公室合伙人陈敏（Isaac Chen）领导团队为赤子城此次配售提供服务，朱步凡（Associate）和贾瑷烨（Legal Assistant）提供协助。