Luye Pharma Group Ltd., a Chinese drugmaker backed by Singapore’s sovereign wealth fund, and the company’s owners are poised to raise $764 million from a Hong Kong initial public offering, people with knowledge of the matter said.
The company, based in eastern China’s Yantai city, plans to sell shares at HK$5.92 apiece, the top end of a marketed range that started at HK$5.38, said the people, who asked not to be identified because the information is private. Luye Pharma and existing investors including GIC Pte offered 999.6 million shares in the sale, according to the company’s IPO prospectus.
Luye Pharma is set to complete Hong Kong’s biggest pharmaceutical IPO in more than three years, according to data compiled by Bloomberg. Sihuan Pharmaceutical Holdings Group Ltd., a Chinese maker of cardiovascular drugs, raised $852 million from a Hong Kong IPO in October 2010, the data show.
New shares account for about two thirds of the offering, with the rest being sold by existing owners including Chinese private equity firms CDH Investments Fund Management Co. and Citic Private Equity Funds Management Co., according to the prospectus. Cornerstone investors including Value Partners Group Ltd. agreed to buy a combined $280 million of stock in the deal, the prospectus shows.
A Hong Kong-based external spokeswoman for Luye Pharma declined to comment.
Shanghai Pharmaceuticals Holding Co., a drugmaker already listed in Shanghai, raised $2.1 billion from a first-time share sale in Hong Kong in May 2011, data compiled by Bloomberg show.