Project Background
At the end of December 2024, a Shenzhen-based intelligent driving company successfully went public on the Hong Kong Stock Exchange through a direct H-share listing, becoming a flagship enterprise in the intelligent driving industry. During the critical pre-listing phase, one of its top five shareholders—a cornerstone investor—needed to complete an ODI (Overseas Direct Investment) filing in China within a short timeframe to support the listing process.
- Industry Position: A leading company in the intelligent driving sector, attracting significant market attention.
- Investment Size: The total investment reached RMB 350 million, making it the largest cornerstone investment ODI filing in the sector for H-share listings in 2024.
- Time Pressure: With only five weeks before the IPO, the ODI filing had to be completed efficiently.
ODI Filing
ODI (Overseas Direct Investment) filing is a critical compliance process for Chinese enterprises and investors engaging in outbound direct investments. It involves approvals from the Ministry of Commerce, the National Development and Reform Commission (NDRC), and the State Administration of Foreign Exchange (SAFE). The main purpose is to ensure that outbound capital flows are legal and compliant while mitigating cross-border investment risks. For H-share listed companies, the ODI filing of cornerstone investors is particularly crucial, as it directly determines whether funds can be timely transferred and used for IPO subscription.
Key Challenges
- Large Investment Approval: The investment amount of RMB 350 million entails a complex and stringent approval process.
- Industry Specificity: The intelligent driving sector involves high-tech components, requiring additional attention to compliance and policy alignment.
- Tight Timeline: The ODI filing needed to be completed within five weeks to ensure timely fund transfer.
Encor’s Solution
Leveraging its extensive experience in ODI filings and deep understanding of capital markets, Encor Group provided the cornerstone investor with efficient and professional support:
- Expert Team Support: Formed a customized task force comprising legal, financial, and compliance experts to design a tailored filing strategy.
- End-to-End Service: Delivered comprehensive support from document preparation to regulatory coordination, including investment agreement review, proof of funds, and overseas investment planning.
- Efficient Coordination: Maintained close communication with local commerce authorities, NDRC, and SAFE to expedite the approval process.
- Risk Control & Compliance Assurance: Anticipated potential issues in advance to ensure all materials met regulatory standards and minimized the risk of rejection.
Results & Value
Timely Filing Completion: Successfully completed the ODI filing within five weeks, ensuring the cornerstone investor could participate in the IPO subscription on schedule.
Industry Benchmark: This project became the largest cornerstone investment ODI filing for H-share listings in 2024, showcasing Encor Group’s service capabilities.
Strengthened Partnership: The cornerstone investor expressed strong trust in Encor’s professionalism and efficiency, and both parties plan to collaborate on future cross-border investment projects.
