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JHL Biotech raises US$106M in bond issuance ahead of planned Hong Kong IPO

JHL Biotech Inc. raised US$106 million from a convertible bond issuance ahead of its anticipated IPO in Hong Kong, the South China Morning Post reported.

The Taiwan-based drug manufacturer, which delisted its shares from the Taipei Exchange in February, is looking to list on The Stock Exchange of Hong Kong Ltd and raise about US$250 million from the IPO.

According to the report, Ion Pacific Ltd., the drug developer's financial adviser on the deal, said most of the proceeds raised from the bond issue will be used to support clinical trials, working capital needs, and further development of JHL's biosimilars pipeline.

Hong Kong-based private equity firm VMS Investment Group (HK) Ltd was the biggest subscriber to the bond.

JP Morgan is a sponsor of the planned IPO, SCMP reported, citing two sources familiar with JHL's plans.

A smaller portion of the funds raised will be used to repurchase shares from the drug developer's minority shareholders who wanted cash instead of holding their delisted shares, one of the sources said.

As of April 30, Hong Kong Exchanges & Clearing Ltd., the parent company of the city's stock exchange, will allow pre-profit, pre-revenue biotech companies with a market capitalization of at least HK$1.5 billion and at least one core product developed beyond the concept stage to list on the main board of the exchange.

JHL biotech joins a list of overseas pharmaceuticals and biotech companies who have expressed interest in listing in Hong Kong. The exchange is expecting the first biotech companies to list on its main board as early as June.