China Resources Pharma Raises $1.8 Billion in Hong Kong IPO
October 21 2016 - 1:50AM
Dow Jones News
China Resources Pharmaceutical Group Ltd. has raised $1.8
billion in one of the biggest Hong Kong initial public offerings of
the year.
The company, controlled by a Chinese state-owned conglomerate,
priced its IPO on Friday at 9.10 Hong Kong dollars (US$1.17) a
share, according to people familiar with the matter. The pricing
was toward the lower end of an indicative range of HK$8.45 to
HK$10.15 a share.
A group of 10 cornerstone investors—who buy big chunks of shares
and hold them for at least six months after the listing—took nearly
half of the offering even before the pricing was fixed.
Those investors include U.K. consumer-goods company Reckitt
Benckiser Group PLC; Japanese camera and medical-equipment maker
Fujifilm Holdings Corp.; Swedish asset manager Nordea Investment
Management AB; and Chinese insurers China Life Insurance Co. and
Anbang Insurance Group Co.
China Resources Pharma plans to use around 45% of proceeds from
the offering to make acquisitions in China and expand its
pharmaceutical manufacturing and distribution businesses, according
to its IPO prospectus. The remainder will be used to set up more
logistics centers and warehouses, investing in research, upgrading
its technology systems, and repaying debt, it said.
The stock will begin trading in Hong Kong on Oct. 28.
Bank of America Merrill Lynch, CCB International (Holdings)
Ltd., China International Capital Corp., and Goldman Sachs Group
Inc. are handling the offering.
Write to Kane Wu at Kane.Wu@wsj.com and Alec Macfarlane at
Alec.Macfarlane@wsj.com
(END) Dow Jones Newswires
October 21, 2016 01:35 ET (05:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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