Business

Saturday September 5, 2009

Sinopharm targets US$1bil from IPO


HONG KONG: China’s largest pharmaceutical products distributor, Sinopharm Group Co Ltd, is set to raise up to HK$8.73bil (US$1.13bil) in an initial public offering of shares in Hong Kong, according to a term sheet seen by Reuters yesterday.

Sinopharm is selling 545.68 million shares at a price ranging from HK$12.25 to HK$16 apiece with an over-allotment option to issue additional shares representing 15% of the offering, the term sheet showed.

The price range translates into a valuation of 19.5 to 25.5 times the company’s projected 2010 earnings, based on the syndicate consensus, a source close to the deal said.

Some 90% of the shares are for international placement with the remainder for public subscription. The company kicked off a roadshow yesterday and the shares will be priced on Sept 15 and trading is expected to begin on Sept 23.

According to a source close to the matter, there are nine cornerstone investors, seven of which plan to invest US$25mil each. The seven are: Singapore’s GIC, China Life, Bank of China’s BOCI, China Construction Bank’s CCB International, global hedge fund OchZiff, investment fund Martin Currie, and Value Partners. — Reuters

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