Part 1: Key parameters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Chapter 1.1: What are cornerstone investors? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Chapter 1.2: From early beginnings in Europe to three key Asian  jurisdictions today........................................... 9
Chapter 1.3: Cornerstone tranches or corporate placings? .................... 13
Chapter 1.4: Differences with pre-IPO investors............................. 16
Chapter 1.5: Types of cornerstone investors and the US option................ 21
Chapter 1.6: Individual subscription amounts .............................. 29
Chapter 1.7: How many cornerstones are in an IPO?......................... 30
Chapter 1.8: Tranche sizes and the question of liquidity...................... 31
Chapter 1.9: What cornerstones bring to IPOs  .............................. 34
Chapter 1.10: What is in it for the cornerstones?.............................. 36
Chapter 1.11: Obligations of cornerstone investors ........................... 38
Chapter 1.12: Anchor investors: Cornerstone investors by another name? ....... 41
Part 2: The legal framework  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Chapter 2.1: Hong Kong ................................................. 45
Chapter 2.2: Malaysia ................................................... 51
Chapter 2.3: Singapore .................................................. 54
Part 3: How the process works in practice  . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Chapter 3.1: Defining the equity story ..................................... 59
Chapter 3.2: The initial approach.......................................... 60
Chapter 3.3: Targeting potential cornerstones............................... 62
Chapter 3.4: Drawbacks of a ‘free-for-all’ approach.......................... 64
Chapter 3.5: Cornerstone marketing and multi-bookrunner syndicates  ........ 67
Chapter 3.6: The bookrunner script  ....................................... 69
Chapter 3.7: The non-disclosure agreement (NDA) .......................... 71
Chapter 3.8: What happens after the NDA has been signed................... 78
Chapter 3.9: Firming up the bids.......................................... 84
Chapter 3.10: The subscription agreement................................... 86
Chapter 3.11: Finalizing the allocations and settlement  ....................... 100
Part 4: Issues associated with cornerstone investors   . . . . . . . . . . . . . . . . . 107
Chapter 4.1: Ethics ...................................................... 109
Chapter 4.2: Cornerstone investors: A way around market forces?............. 111
Chapter 4.3: Disclosure .................................................. 113
Chapter 4.4: The lock-up requirement ..................................... 115
Chapter 4.5: Recent developments ........................................ 117
Conclusion.............................................................. 119
Appendix 1: Recent examples of cornerstone tranches in Hong Kong .......... 123
Appendix 2: Older examples of cornerstone tranches in Hong Kong ........... 129
Appendix 3: Recent examples of cornerstone tranches in Malaysia............. 132
Appendix 4: Recent examples of cornerstone tranches in Singapore............ 136
Appendix 5: Sample script for an initial approach to potential cornerstone  investors by bookrunner banks........................ 139
Appendix 6: Example of a non-disclosure agreement for potential cornerstone investors ................................................... 141 Appendix 7: Example of an international cornerstone subscription  agreement .................................................. 152
Appendix 8: Selected profiles of cornerstone investors ....................... 169
Appendix 9: Target list of potential cornerstone investors (by jurisdiction)...... 205
Glossary ................................................................ 212
About the author  ........................................................ 243
Index................................................................... 244