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Report: China's Hansoh Pharmaceutical to raise up to US$1B in Hong Kong IPO

Hansoh Pharmaceutical Group Co. Ltd. is selling 551 million shares at a price of between HK$13.06 and HK$14.26 apiece in its Hong Kong IPO, Bloomberg News reported, citing deal terms obtained by the news outlet.

Gross proceeds from the offering are expected to reach up to US$1 billion.

Hansoh's IPO has attracted cornerstone investors such as Singapore's sovereign wealth fund GIC Pte. Ltd. and Hong Kong-based private equity firm Boyu Capital Consultancy Co. Ltd., Bloomberg added. GIC and Boyu Capital committed to subscribe for US$70 million and US$60 million, respectively.

Other private equity firms Ally Bridge Group, OrbiMed Advisors LLC and Prime Capital are also participating in the offering, purchasing US$40 million of shares each. Additionally, Hillhouse, Cormorant Asset Management LP, Vivo Capital LLC and Shanghai Pharmaceuticals Investment Ltd. are joining the IPO.

Hansoh's listing would be the second largest in Hong Kong in 2019, next to Chinese brokerage Shenwan Hongyuan Group Co. Ltd., which raised US$1.16 billion in its IPO, Bloomberg noted.

The pharmaceutical company is based in the city of Lianyungang in China's Jiangsu province and focuses on antibiotics and treating cancer, diabetes, gastrointestinal, heart and mental disorders. In 2018, the company reported pretax profit of 2.31 billion Chinese yuan and revenue of 7.72 billion yuan.

Hansoh will price its IPO June 5, while its shares are scheduled to begin trading June 14.

Morgan Stanley Asia Ltd. and Citigroup Global Markets Asia Ltd. are the joint sponsors of the offering.

As of May 29, US$1 was equivalent to 6.91 Chinese yuan.