Hansoh Pharma Gets GIC, Boyu Capital As Investors Before Its $1b HK IPO

Hansoh Pharmaceutical Group Co. is seeking to raise as much as $1 billion in a Hong Kong initial public offering after attracting cornerstone investors including Singapore’s sovereign wealth fund GIC Pte and Boyu Capital.

The Jiangsu-based company is offering 551 million shares at HK$13.06 to HK$14.26 apiece, according to terms for the deal obtained by Bloomberg. The offering has attracted nine cornerstone investors to buy a combined $344 million of the base offering based on top-end pricing, the terms show.

At $1 billion, Hansoh’s share sale would be the second biggest in Hong Kong this year amid a relatively slow start, trailing only Chinese brokerage Shenwan Hongyuan Group Co.’s $1.2 billion listing, according to data compiled by Bloomberg.

GIC will subscribe for $70 million of Hansoh’s shares, the biggest amount among the nine cornerstone investors, followed by a $60 million commitment from Boyu Capital, the terms show. Ally Bridge, OrbiMed Advisors and Prime Capital will each purchase $40 million of shares. Hillhouse, Cormorant Asset Management, Vivo Capital and Shanghai Pharmaceuticals Investment Ltd. are also attracted to the deal.

Hansoh, which researches and produces drugs for six major therapeutic areas, reported 1.9 billion yuan ($275 million) in profit in 2018, 19% more than the year before, a preliminary prospectus shows. The company gets almost half of its revenue from cancer treatments.

The company aims to price the offering June 5 before starting trading June 14, the terms show. Morgan Stanley and Citigroup Inc. are joint sponsors for the share sale, according to the prospectus.

Bloomberg