Hong Kong Smiles on Biotech, Lowballs Club Med in Latest IPOs
(Bloomberg) — Separate Hong Kong initial public offerings (IPOs) by biotech firm WuXi AppTec and Fosun Tourism, owner of the Club Med resort chain, will raise a collective $1.5 billion in the latest of a yearlong string of offshore listings by Chinese companies, sources familiar with the deals said.
WuXi AppTec Co., the Shanghai-listed contract medical researcher, has raised $1.01 billion after pricing its Hong Kong first-time share sale above the midpoint of a marketed range, according to people with knowledge of the matter.
The Chinese company sold 116.5 million shares at HK$68 ($8.70) apiece, the people said, asking not to be identified because the information is private. The shares were offered at HK$64.10 to HK$71.50 each. The final pricing is lower than the guidance WuXi AppTec’s deal arrangers gave Thursday, when they told investors that orders below HK$70 per share would likely miss out.
WuXi AppTec is completing its offering after a slump in Chinese drug stocks amid concern the government is driving down generic drug prices. CSPC Pharmaceutical Group Ltd., which is bidding to provide drugs to Chinese cities through a centralized procurement program, tumbled 14% Thursday in its biggest decline since 2008. Sino Biopharmaceutical Ltd. dropped almost 16%.
An external representative for WuXi AppTec said she couldn’t immediately comment. IFR reported the pricing earlier Friday, citing unidentified people.
Morgan Stanley, Huatai Securities Co. Ltd. and Goldman Sachs Group Inc. are joint sponsors of Wuxi AppTec’s Hong Kong listing.
In a separate deal on a similar track, Fosun Tourism Group, a unit of billionaire Guo Guangchang’s drugs-to-insurance conglomerate, raised HK$3.34 billion after pricing its Hong Kong IPO at the bottom of a marketed range, people with knowledge of the matter said.
The owner of luxury resort brand Club Med sold 214.2 million shares at HK$15.60 apiece, the people said, asking not to be identified because the information is private. The shares were offered at HK$15.60 to HK$20 each.
Fundraising from first-time share sales in Hong Kong has more than doubled this year to $34 billion, according to data compiled by Bloomberg. Babytree Group, also backed by Fosun International Ltd., raised $217 million in its IPO in the city last month, the data show.
An external representative for Fosun Tourism declined to comment.
Alibaba Group Holding Ltd., Shun Tak Holdings Ltd. and Suchuang Gas Corp. agreed to buy about $49 million of stock in Fosun Tourism’s offering as cornerstone investors, its prospectus shows. The company expects to begin trading Dec. 14.
JPMorgan Chase & Co., CLSA Ltd. and Citigroup Inc. are joint sponsors of the deal.
Contact editor Yang Ge (firstname.lastname@example.org)
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