Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Sinopharm Falls on $515 Million Share-Sale Plan: Hong Kong Mover

Sinopharm to Raise Up to $515 Million in Hong Kong Share Sale
A cyclist rides past the Sinopharm Group Co. headquarters in Beijing. Photographer: Doug Kanter/Boomberg

Sinopharm Group Co., China’s biggest drug distributor, posted the largest decline in almost three years in Hong Kong trading after saying it will sell as much as HK$4 billion ($515 million) in new shares.

Sinopharm fell 7.2 percent to HK$25.05 at the close in Hong Kong, the largest drop since May 25, 2010. The stock was the fourth-biggest decliner on the MSCI Asia Pacific excluding Japan Index.

The company will sell as many as 165.7 million shares to between six and 10 non-retail investors at HK$24.60 each to raise money for expanding its sales network, Shanghai-based Sinopharm said in a filing today. That’s 8.9 percent less than the stock’s closing price yesterday. The number of shares is equivalent to 16.67 percent and 6.45 percent, respectively, of Sinopharm’s enlarged H-share and total issued share capital after the sale, it said.

“The company needed the money to continue growing,” Carol Xiao, a Shanghai-based analyst at UOB Kay Hian Investment Co. said today. Sinopharm will probably sell additional shares after this year to fund growth, she said.

Sinopharm said it will use the funds raised “for the expansion of pharmaceutical distribution and retail network and replenishment of liquidity after the expansion.”

State-owned China National Pharmaceutical Group Corp. will retain control of the company after the sale, according to the statement.

Morgan Stanley, UBS AG and China International Capital Corp. are the placing agents for the sale.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.