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Appraisal and Advisory

A comprehensive suite of IPO services meet the needs of a diverse client base.

​​​​​​​​​​​​​​​For the past 5 years, we have assisted in the IPO of more than 300 Chinese companies on the different stock exchanges in the world. We keep abreast of regulatory and accounting developments, and anticipate potential issues faced by companies seeking listing to provide efficient and effective solutions within stringent time requirements.

Valuation for Initial Public Offering (IPO) Purpose
Capital Market is one of the major platforms that companies use to raise funds. The independent valuation of assets is a vital element for many stock exchanges across different jurisdictions, with several making it mandatory. Our IPO practices provide valuation, due diligence, advice, and verification of relevant interests in terms of real estate, plant & machinery, business, mining, and rents.

Real Estate Valuation/Due Diligence
Real estate is a major component of many companies' assets. The property interests owned by the issuer are subject to different valuation and disclosure requirements under the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited. Our services in this issue include providing the sponsor/issuer with due diligence, advice and verification of relevant property interests, advisory on the definition of "A Property Interest" and "Property Activities" under Ch.5 of the Listing Rules, assistance on the threshold tests for the inclusion of property valuation report, guidance to potential listing companies on the general disclosure obligation to disclose information on the material property interests, preparation of the overview of property interests and property valuation reports, and liaison with intermediaries regarding Exchanges relating to valuation matters.

Plant & Machinery Valuation/Due Diligence
Plant, machinery and equipment often make up a significant part of a company’s overall investment. For manufacturing companies, this type of asset frequently exceeds the value of real estate assets. Hence, machinery valuation is often required for capital raising activities such as project finance merger and acquisition, joint venture and insurance reference, etc. We perform the valuation and/or due diligence services to plant & machinery for the IPO purpose.

Industry Overview
We perform the industry overview in terms of the market analysis and performance risk of the industry for our clients to understand the stock market climate in order to make timely decisions about their investment and/or disposal of assets.

Business Valuation
We perform valuation advisory service to companies who constantly strive for international growth and global recognition. In the IPO valuation market, our business valuation service includes the project finance modelling, capital fund raising advisory, and debt financing advisory.

Mining Valuation
As a sign of the increasing importance of natural resources sector, the Hong Kong Stock Exchange introduced the new Chapter 18 listing rules in June 2010, while the Singapore Exchange introduced the Catalist Listing Rule for Mineral, Oil and Gas Companies in February 2011. Subsequent amendments and guidelines have also been issued by the exchanges to strengthen the disclosure and valuation requirements. We provide:

  • Valuation of mineral reserves and resources and pertained mining assets for IPO, M&A and internal reference purpose
  • Valuation reports of Mineral Assets under VALMIN, CIMVAL or SAMVAL
  • Competent Evaluator's Reports compliant with HKEx Listing Rules 18 and 18A
  • Valuation of fair values of the Intangible Asset of Mining Right and the Property, Plant and Equipment ("PPE") under IFRS
  • Seamless valuation reconciliation service between mineral assets under VALMIN and intangible asset of mining rights under IFRS

Rental Opinion
We provide our opinion on the reasonableness of the tenancy agreements between our clients and their subsidiaries and/or connected parties for IPO purpose under the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited. For this purpose, we review the terms of the tenancy agreements and provide opinion if the rents received or payable under the lease are fair and reasonable and if they are consistent with prevailing market rates for similar properties situated in the locality that are used for similar purposes at the relevant dates of leases.

Biological Asset
Biological assets, like forestry and livestock, have always been among the most popular asset classes for global investors. Due to the complexity and diversification of every species of biological assets, it is a challenging exercise for potential investors to evaluate their investment opportunities. CAA comprises a group of independent professional valuers with extensive experience and expertise in relation to biological assets valuation. Our team consists of professional valuers and agricultural experts who work seamlessly together in a wide array of biological assets to ensure the reliability and fairness of our valuation services. The team also provides quality consultancy services in the management and operation of pasture, farmlands, and orchards.

Furthermore, according to the International Accounting Standard 41 – Agriculture ("IAS 41"), biological assets (defined as living animals and plants) are required to be recorded as fair value less cost to sell on initial recognition and each reporting date; the gains or losses arising on initial or subsequent measurement of biological assets shall be included in profit and loss for the period in which it arises. Therefore, biological assets valuation may have material impact to a company's financial statement.