newsdog Facebook

Chinese biotech firm WuXi AppTec said to raise $1b in HK share sale

Deal Street Asia 2018-12-07 08:15:07

Chinese biotech firm WuXi AppTec said to raise $1b in HK share sale

A Wuxi Pharmatech Inc. employee works at one of the production facilities on the outskirts of Shanghai, China, on Friday, Oct. 26, 2007. Photographer: QILAI SHEN/Bloomberg

WuXi AppTec Co., the Shanghai-listed contract medical researcher, has raised $1.01 billion after pricing its Hong Kong first-time share sale above the midpoint of a marketed range, according to people with knowledge of the matter.

The Chinese company sold 116.5 million shares at HK$68 apiece, the people said, asking not to be identified because the information is private. The shares were offered at HK$64.10 to HK$71.50 each. The final pricing is lower than the guidance WuXi AppTec’s deal arrangers gave Thursday, when they told investors that orders below HK$70 per share would likely miss out.

WuXi AppTec is completing its offering after a slump in Chinese drug stocks amid concern the government is driving down generic drug prices. CSPC Pharmaceutical Group Ltd., which is bidding to provide drugs to Chinese cities through a centralized procurement program, tumbled 14 percent Thursday in its biggest decline since 2008. Sino Biopharmaceutical Ltd. dropped almost 16 percent.

An external representative for WuXi AppTec said she couldn’t immediately comment. IFR reported the the pricing earlier Friday, citing unidentified people.

Morgan Stanley, Huatai Securities Co. and Goldman Sachs Group Inc. are joint sponsors of Wuxi AppTec’s Hong Kong listing.

Subscribe to our newsletter.

Bring stories like this into your inbox every day. Sign up for our newsletter — The Daily Brief.