Shanghai Henlius Biotech Co. Ltd., a subsidiary of Shanghai Fosun Pharmaceutical (Group) Co. Ltd. and Fosun International Ltd., priced an IPO to list its securities on the Stock Exchange of Hong Kong in the range of HK$49.60 and HK$57.80 per share.
Shanghai-based Henlius, which develops monoclonal antibody treatments for illnesses including cancer and autoimmune diseases, is selling 64,695,400 shares in the offering to raise HK$3.35 billion in net proceeds, based on the midpoint of the price range. Henlius will issue 6,469,600 shares in the Hong Kong offering and the remaining 58,225,800 shares in the international offering.
Henlius has granted underwriters an option to purchase up to an additional 9,704,300 shares. Full exercise of the option will increase the net proceeds by HK$506.5 million.
The company plans to use the proceeds for its ongoing trials and regulatory filings. Additionally, the funds will be used for working capital and general corporate purposes.
Scott Shi-Kau Liu is president, executive director and CEO of Henlius. Immediately following the completion of the offering, Fosun Pharma will own about a 53.76% stake in the company
China International Capital Corp., Bank of America Merrill Lynch, CMB International, Fosun Hani and Citi are the joint sponsors of the listing. UBS is acting as Henlius' financial adviser in the transaction.
Political unrest in Hong Kong that started in June has impacted investors' view about the capital markets. The Henlius offering is the first sizable public float to test market sentiment amid the protests.
The Fosun unit is the 13th biotechnology company to apply for an IPO in Hong Kong after the exchange relaxed listing rules in April to entice pre-revenue and pre-profit biotech companies.
