On March 24, 2015, Baofeng Group Co., Ltd. (300431.SZ) completed its A-share IPO and was listed on ChiNext market of Shenzhen Stock Exchange. Jingtian & Gongcheng is the legal counsel to the sponsor of the project. Baofeng is offering 30 million ordinary shares in the IPO, and the total number of shares after issuance is 120 million. The issuance price is 7.14 yuan/share, and at market opening the share price rocketed to 10.28 yuan, hitting the 44% upside trading limit for the day.

Baofeng is popular among internet users with its “Omnipotent Baofeng Video Player”. It boasts a large number of internet users and high brand recognition. It’s products are evolving gradually from local player to online video player, from PC to mobile. Before IPO, the company launched VR product Baofeng Mojing (magic lens) and supporting mobile APP. Virtual reality is future business for the company. On the date of the issuance, the online initial subscription for its new shares has hit a ChiNext market record.

During the 4 years of the project, Jingtian & Gongcheng has provided meticulous and comprehensive legal services, such as constructive proposals to unwind the VIE structure, implementation of employee options, copyright disputes settlement, etc. It’s worth special mention that together with the sponsor and legal counsel of the issuer, Jingtian & Gongcheng helped to clear the various doubts raised by CSRC concerning the unwinding of VIE structure, such as if there is change of control by the issuer, exit channel and source of funding by overseas investors, potential conflicts of the unwinding, legality of relevant FX transactions. Under the backdrop of encouraging internet companies to return to A-share market by the country, Baofeng becomes the second internet video service provider to be listed on the A-share market after LeTV. This project is also a rare successful case of returning to A-share market by winding down its VIE structure, and has received wide attention by the market since its IPO.