Chapters in this book

1. Frontmatter i
2. Contents v
3. Introduction 1
4. Part 1: Key parameters
5. 1.1: What are cornerstone investors? 5
6. 1.2: From early beginnings in Europe to three key Asian jurisdictions today 9
7. 1.3: Cornerstone tranches or corporate placings? 13
8. 1.4: Differences with pre-IPO investors 16
9. 1.5: Types of cornerstone investors and the US option 21
10. 1.6: Individual subscription amounts 29
11. 1.7: How many cornerstones are in an IPO? 30
12. 1.8: Tranche sizes and the question of liquidity 31
13. 1.9: What cornerstones bring to IPOs 34
14. 1.10: What is in it for the cornerstones? 36
15. 1.11: Obligations of cornerstone investors 38
16. 1.12: Anchor investors: Cornerstone investors by another name? 41
17. Part 2: The legal framework
18. 2.1: Hong Kong 43
19. 2.2: Malaysia 51
20. 2.3: Singapore 54
21. Part 3: How the process works in practice
22. 3.1: Defining the equity story 57
23. 3.2: The initial approach 60
24. 3.3: Targeting potential cornerstones 62
25. 3.4: Drawbacks of a ‘free-for-all’ approach 64
26. 3.5: Cornerstone marketing and multi-bookrunner syndicates 67
27. 3.6: The bookrunner script 69
28. 3.7: The non-disclosure agreement (NDA) 71
29. 3.8: What happens after the NDA has been signed 78
30. 3.9: Firming up the bids 84
31. 3.10: The subscription agreement 86
32. 3.11: Finalizing the allocations and settlement 100
33. Part 4: Issues associated with cornerstone investors
34. 4.1: Ethics 107
35. 4.2: Cornerstone investors: A way around market forces? 111
36. 4.3: Disclosure 113
37. 4.4: The lock-up requirement 115
38. 4.5: Recent developments 117
39. Conclusion 119
40. Appendix 1: Recent examples of cornerstone tranches in Hong Kong 123
41. Appendix 2: Older examples of cornerstone tranches in Hong Kong 129
42. Appendix 3: Recent examples of cornerstone tranches in Malaysia 132
43. Appendix 4: Recent examples of cornerstone tranches in Singapore 136
44. Appendix 5: Sample script for an initial approach to potential cornerstone investors by bookrunner banks 139
45. Appendix 6: Example of a non-disclosure agreement for potential cornerstone investors 141
46. Appendix 7: Example of an international cornerstone subscription agreement 152
47. Appendix 8: Selected profiles of cornerstone investors 169
48. Appendix 9: Target list of potential cornerstone investors (by jurisdiction) 205
49. Glossary 212
50. About the author 243
51. Index 244