China’s WuXi AppTec raises $1 billion in HK itemizing: sources

China's WuXi AppTec raises $1 billion in HK listing: sources

HONG KONG (Reuters) – Chinese language medical tech platform WuXi AppTec (603259.SS) raised $1.01 billion in its Hong Kong itemizing, sources instructed Reuters on Friday, making it one among this 12 months’s final huge offers within the Asian monetary hub to finish on a optimistic notice.

FILE PHOTO – Researchers work at a laboratory of WuXi AppTec (Shanghai) Co., Ltd. in Shanghai, China, April 25, 2016. REUTERS/Aly Track

Shanghai-listed WuXi priced its itemizing at HK$68 ($8.71) per share, on the center of an indicated vary of HK$64.1-HK$71.5, stated the sources, who’re acquainted with the matter.

It may elevate as much as $1.16 billion if an over-allotment choice is exercised inside a month of the beginning of buying and selling.

WuXi couldn’t be instantly reached for a remark.

This itemizing ought to come as excellent news for Hong Kong the place many corporations like Meituan Dianping (3690.HK) have sunk under their IPO costs, whereas others have scaled again their focused fundraising amid jittery markets.

Bankers have been hoping for WuXi and tech large Tencent’s (0700.HK) music arm, which launched its hotly-anticipated U.S. preliminary public providing (IPO) of as much as $1.2 billion on Monday, to go properly and assist usher in 2019 on a optimistic notice.

One supply stated WuXi may have priced increased – it was giving steerage of HK$70 on Thursday – however wished to go away cash on the desk due to risky markets this week.

Hong Kong is on observe to grow to be the world’s high IPO heart by quantity this 12 months, with $33.2 billion raised to this point, Refinitiv information reveals. However issues over a China-U.S. commerce struggle and slowing progress on this planet’s No.2 financial system proceed to be a drag.

Hong Kong’s benchmark Grasp Seng index .HSI is down greater than 12 p.c this 12 months.

Shanghai-based WuXi describes itself as the biggest pharmaceutical R&D companies platform in Asia by income.

The corporate had revenues of 4.41 billion yuan ($641 million) within the first half of this 12 months, versus 3.67 billion yuan in the identical interval final 12 months, in accordance with its itemizing prospectus. Its earnings jumped 67 p.c to 1.Three billion yuan within the first half.

WuXi intends to make use of the proceeds from the itemizing to broaden capability throughout its models globally, spend money on seven China initiatives reminiscent of a Chengdu R&D campus and arrange a bioanalytical laboratory in San Diego, California, the prospectus says.

It additionally intends to fund the acquisition of contract analysis group firms.

WuXi shares will start buying and selling in Hong Kong on Dec. 13.

Goldman Sachs, Huatai Monetary and Morgan Stanley (MS.N) are sponsoring the itemizing.

($1 = 7.8107 Hong Kong {dollars})

($1 = 6.8818 Chinese language yuan)

Reporting by Julia Fioretti; Modifying by Himani Sarkar

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