Fosun Raises $500 Million by Spinning Off Israeli Unit
Fosun Pharmaceutical Co. has raised HK$3.91 billion ($500 million) from floating its Israeli laser-making unit on the Hong Kong stock exchange.
Fosun Pharma, whose parent Fosun International had forked out billions of dollars on overseas acquisitions in recent years, said its unit Sisram Medical Ltd. has sold its initial public offering (IPO) shares in Hong Kong for HK$8.88 a share. The price is at the bottom of its indicative price range of HK$8.88 to HK$12.35 a share.
The listing of Sisram was seen as debt relief for Sisram’s Shanghai-based owner Fosun International, Caixin reported earlier, as the parent been under pressure after government’s crackdown on overseas spending sprees, as well as its growing debt pile.
According to Fosun Pharma’s regulatory filings to the Hong Kong exchange, it and its parent Fosun International will own 52.96% of Sisram after the IPO if the over-allotment option is not exercised. Their stake in the newly-listed firm will be 51.05% if the over-allotment option is fully exercised.
Sisram will start trading in Hong Kong on Sept. 19. The company is one of the leading providers of aesthetic treatment devices in China and holds a market share of 16% in the country. It will become the first Israeli company to list in Hong Kong.
Fosun started as a pharmaceutical company in 1994, but later evolved into one the most aggressive of a new generation of globally minded Chinese private equity buyers. It has spent more than $7 billion since 2013 on deals in industries such as health care, insurance, energy and property. Its portfolio includes investments in names like resort operator Club Med and show producer Cirque du Soleil.
But market observers have expressed concern about the company’s frequent and costly purchases.
Contact reporter Leng Cheng (email@example.com)
Oct 21 17:14
Oct 21 12:31
Oct 21 12:39
Oct 21 10:16
Oct 18 18:20
Oct 18 18:11
Oct 18 17:26
Oct 18 17:15
Oct 18 15:26
Oct 18 13:54
Oct 18 12:57
Oct 18 12:25
Oct 18 11:40
- 1In Depth: How $2.7 Billion of Fake Gold Tarnished Local Lending
- 2In Unusual Move, Huawei Offers ‘No Backdoor’ Deal to India Amid Security Concerns: Report
- 3Regulator Flags Risks of Concentration in Private Fund Management
- 4China Races Ahead of U.S. in Deployment of Electric-Vehicle Charging Stations
- 5Ling Huawei: Are Banks Making High Provisions for Tax Avoidance? Or for Rainy Days?
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas