State-owned Shanghai Pharmaceuticals Holding said its Hong Kong initial public offering launched today, aimed at raising more than HK$15 billion, could become the second-biggest health-care and pharmaceutical offer in the world in the past five years.
'Listing in Hong Kong has opened doors to international platforms and opportunities,' said Lu Mingfang, chairman of Shanghai Pharmaceuticals. The company entered into a memorandum of understanding with pharmaceutical giant Pfizer in April, paving the way for collaboration in China in the future, he added.
Japanese pharmaceutical firm Otsuka raised the equivalent of HK$18.6 billion last year in what was the world's largest health-care offer ever.
Unlike Sinopharm Group, which focuses mostly on distribution, Shanghai Pharmaceuticals has a substantial market share in both product manufacturing and distribution.
'Hong Kong retail investors seem to be keen on its distribution business, not so much on its manufacturing business,' said Kenny Tang Sing-hing, general manager of MTD Financial Planning, a subsidiary of Cheung Kong Group.
Tang added the company has suffered from rising costs and competition on the manufacturing side.