CR Pharma Said to Be Cleared for $2 Billion H.K. IPO Next MonthBy
China Resources Pharmaceutical Group Ltd. received approval from the Hong Kong stock exchange for its proposed initial public offering, which may raise as much $2 billion next month in one of the world’s biggest IPOs this year, according to people with knowledge of the matter.
This week’s approval paves the way for China’s second-largest drugmaker to start gauging demand next week, begin taking orders on Sept. 29 and price the offering on Oct. 12, according to the people, who asked not to be identified because the information is confidential. The shares will probably be listed in Hong Kong on Oct. 19, they said.
The plan is preliminary and subject to change. Representatives for China Resources Pharma and the Hong Kong exchange declined to comment.
At $2 billion, the deal would be one of the world’s biggest IPOs so far this year and come at a time Chinese stocks in Hong Kong are rallying more than in other markets, according to data compiled by Bloomberg. Postal Savings Bank of China Co. is pursuing an offering that may raise about $8 billion, according to people familiar with the matter, in what would be the largest such deal in 2016.
China Resources Pharma has said it plans to use proceeds from the IPO to fund acquisitions, expand its manufacturing and distribution businesses, build warehouses and invest in research. The company is a unit of state-run parent China Resources group, a diversified conglomerate whose businesses range from beer to electricity generation, real estate and finance.