BRIEF: Hengrui Pharma to raise up to $1.3 billion in Hong Kong IPO

Jiangsu Hengrui Pharmaceuticals Co. Ltd. (1276.HK; 600276.SH) launched its Hong Kong IPO on Thursday, aiming to sell 225 million shares at a price range of HK$41.45 to HK$44.05 per share, representing a roughly 25% discount to the price of its Shanghai-listed shares. The company will sell 5.5% of the shares to local retail investors. The sale could raise up to HK$9.9 billion ($1.3 billion), with subscriptions closing next Tuesday and trading commencing Friday.

The company specializes in therapies for areas spanning oncology, metabolic and cardiovascular diseases, immunology, respiratory disorders and neuroscience. Its portfolio includes over 110 commercialized drugs, featuring 19 new molecular entity innovative medicines and four other breakthrough therapies.

Its profit surged 48% year-on-year to 6.34 billion yuan in 2024. Its revenue climbed 20.1% year-on-year to 7.2 billion yuan in this year’s first quarter, with net income jumping 36.9% to 1.9 billion yuan.

Seven cornerstone investors have committed to buying a collective $530 million worth of Hengrui’s IPO shares, including Singapore’s GIC, Invesco Advisers, UBS Asset Management Singapore, Cordial Solar, Hillhouse Capital, Millennium Management and Oaktree Capital Management.

By Lau Chi Hang

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