SIIC Medical Science and Technology (Group) is to spin off its cosmetics-making unit Shanghai Jahwa United for an A-share listing in Shanghai, according to a company spokesman.
A total of 80 million new Shanghai Jahwa shares will be offered to domestic investors from February 20 to February 28 at 9.18 yuan apiece.
The offering will allow Shanghai Jahwa to raise 712.62 million yuan (about HK$667.93 million).
The proceeds will be used for expanding its sales network, new-product development and research and development.
The listing of Shanghai Jahwa might result in an exceptional profit for the Growth Enterprise Market (GEM)-listed medical company, SIIC Medical Science said in its announcement, but the amount was not disclosed.
The issue represents 29.6 per cent of Shanghai Jahwa's enlarged shares. Upon completion of the issue, SIIC Medical's interest in Shanghai Jahwa will be diluted to 28.15 per cent from 40 per cent.