Advising Softcare on International Sanctions for HKD2.38 billion Hong Kong IPO

DLA Piper acted as the International Sanctions Legal Advisor for Softcare, a multinational hygiene product manufacturer, on its successful listing on the Main Board of the Hong Kong Stock Exchange. The IPO raised approximately HKD2.38 billion (USD306 million). Softcare’s Hong Kong public offering was oversubscribed 1,813.77 times, while the international placement was oversubscribed 34.33 times.

Softcare’s history can be traced back to 2009, when it was established as an internal business segment of Sunda Group. The company launched Softcare baby diapers in Ghana in 2009, and has since grown to become the leading diaper and sanitary napkin brand by sales volume in Africa.

Softcare intends to use the majority of the IPO proceeds (approximately 71.4%) to expand overall production capacity and upgrade production lines, approximately 11.6% will be allocated for marketing and promotion in Africa, Latin America, and Central Asia; 4.7% for strategic acquisitions in the hygiene product industry; 0.4% to upgrade and implement a CRM system across its global operations; 2.6% for engaging management consultants to analyse new markets and products; and the remaining 9.3% for working capital and general corporate purposes.

DLA Piper provided legal guidance and compliance support related to international sanctions and export controls laws – a critical component for Softcare, which operates across multiple jurisdictions, including regions with complex trade and regulatory environments.

The DLA Piper team was led by Nathan (Nate) Bush, partner in International Trade, Antitrust and Investigations, (part of the firm’s Litigation & Regulatory practice), with support from senior associate Yong Min Oh and associate Jan Zhan, all members of the Litigation & Regulatory practice in Singapore. Additional support was provided by senior associate Runyu Liu from Shanghai Kaiman Law Firm in China.

Nate commented: “Softcare’s cross-border growth strategy required careful assessment of international sanctions regimes. Supporting its IPO journey further demonstrates our extensive experience in this field to provide advice that reflects the realities of operating in diverse global markets.”

DLA Piper’s international trade team includes native Mandarin-speaking U.S. qualified trade lawyers in Shanghai and Singapore, a former U.S. Court of International Trade clerk and semiconductor industry in-house counsel in Singapore, alongside the expertise of our Hong Kong capital markets team.  The firm’s trade lawyers in the UK, EU, Canada, Australia, and other jurisdictions advise on the applicability of sanctions enacted by these jurisdictions. DLA Piper has recently acted as International Sanctions Legal Advisors for several Hong Kong IPO listings, including Folangsi, Ruichang International, and Legal Advisor on Tariffs for Lens Technology.