China Life, Fujifilm among investors lined up for CR Pharmaceutical’s US$2 billion IPO
China Resources Pharmaceutical will sell 1.543 billion shares priced at HK$8.45 to HK$10.15 in debut planned for October 28
China Resources Pharmaceutical, the country’s second-largest drugmaker, has lured a slew of heavyweight investors as it aims to raise as much as US$2 billion in what would be one of the largest Hong Kong initial public offerings this year.
China’s biggest insurer, China Life Insurance, and the Japanese multinational Fujifilm Corporation are among the big-name companies that have committed to buying stakes, according to terms of the deal seen by the Post.
Fund managers who met with senior management at a roadshow for investors on Friday told the South China Morning Post the offering of 1.543 billion shares at HK$8.45 to HK$10.15 apiece was a “very reasonable deal,” as they saw the listing improving the company’s M&A prospects, which could prop up the share price.
“It is not as expensive as China Postal Savings Bank, and we view the company as a juicy bet because we expect it to be active in carrying out acquisitions after the public listing,”said a Hong Kong-based fund manager who was not authorised to speak to media.
The pharmaceutical flagship of Chinese state conglomerate China Resources is expected to debut on the Hong Kong stock exchange on October 28 after eight cornerstone investors agreed to purchase 46 to 55 per cent of the shares being offered, according to terms of the deal seen by the Post. The company plans to take orders from institutional investors on Monday and price the offering on October 21.
Serena Shao, CLSA
Fujifilm said in a statement it planned to further tap into high-quality pharmaceuticals and dietary supplements businesses in China through this investment.