Luye Pharma, Owners Seek Up to $764 Million From Hong Kong IPO

Photographer: Charles Pertwee/Bloomberg

Liu Dian Bo, chairman and founder of Luye Pharma Group Ltd. Luye Pharma, founded in 1994, employs more than 3,000 staff, according to its website. It plans to use the IPO proceeds to fund acquisitions, research and development and increase production capacity, the terms show. Close

Liu Dian Bo, chairman and founder of Luye Pharma Group Ltd. Luye Pharma, founded in... Read More

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Photographer: Charles Pertwee/Bloomberg

Liu Dian Bo, chairman and founder of Luye Pharma Group Ltd. Luye Pharma, founded in 1994, employs more than 3,000 staff, according to its website. It plans to use the IPO proceeds to fund acquisitions, research and development and increase production capacity, the terms show.

Luye Pharma Group Ltd., a Chinese drugmaker backed by Singapore’s sovereign wealth fund, and existing owners are seeking to raise as much as $764 million from a Hong Kong initial public offering.

The company and its investors are selling 999.6 million shares at HK$5.38 to HK$5.92 each, according to terms for the deal obtained by Bloomberg News. The shareholders include GIC Pte as well as Chinese private equity firms CDH Investments Fund Management Co. and Citic Private Equity Funds Management Co., the terms show.

Luye Pharma is selling stock after delisting from the Singapore exchange in 2012 in a management buyout valuing the company at about S$641 million ($513 million). The company plans to start trading in Hong Kong on July 9, according to the terms.

Six cornerstone investors have committed to buying $280 million of stock in the offering, the terms show. Value Partners Group Ltd. (806) has agreed to purchase $100 million of shares, while Orbimed and Prime Capital will each invest $50 million, according to the terms.

Luye Pharma, founded in 1994, employs more than 3,000 staff, according to its website. It plans to use the IPO proceeds to fund acquisitions, research and development and increase production capacity, the terms show.

To contact the reporter on this story: Joyce Koh in Singapore at jkoh38@bloomberg.net

To contact the editors responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net Ben Scent, Terje Langeland

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