China’s Hansoh secures nine investors for IPO, Latest Business News - The New Paper

China’s Hansoh secures nine investors for IPO

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HONG KONG : Chinese drugmaker Hansoh Pharmaceutical Group has secured nine cornerstone investors including Singapore's GIC and China's Boyu Capital for its up to US$1 billion (S$1.38 billion) Hong Kong initial public offering (IPO), according to a term sheet seen by Reuters.

The Jiangsu-based drugmaker started book-building of its Hong Kong float yesterday.

It is selling about 551 million primary shares, or 9.7 per cent of its enlarged share capital, at an indicative range of HK$13.06 (S$2.30) to HK$14.26, the term sheet showed.

Hansoh has lined up a total of US$344 million from nine cornerstone investors based on the top-end of the price range.

Singapore's sovereign wealth fund GIC has made the biggest commitment of US$70 million, followed by private equity firm Boyu, which is pledging US$60 million, according to the term sheet.

Other cornerstones include Chinese investment firms Ally Bridge and Hillhouse Capital Group, Europe-based asset manager Prime Capital and US healthcare investment firm OrbiMed.

If a 15 per cent "greenshoe", or over-allotment, option is exercised, that would bring the deal size to US$1.15 billion, showed the term sheet.

Hansoh is set to fix the price of the deal on June 5 and trading of its shares is scheduled to start on June 14. - REUTERS