Wuxi AppTec raises US$981 mn in Hong Kong offer amid growing appetite for Chinese biotech
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The Shanghai-based company sold 73.8 million new shares to institutional investors at HK$104.27 each, a 6.9 per cent discount to their closing price of HK$112 on Wednesday, it said in a filing to Hong Kong's bourse on Thursday. The stock fell 5.2 per cent to HK$106.20 amid a declining market at 10.20am.
The sale of additional shares, involving the issuance of stock equivalent to a 2.57 per cent stake in the company, was led by Morgan Stanley, Citi, Goldman Sachs and HSBC.
'The proceeds will provide readily available funding for the company to accelerate global expansion and capacity construction, serving as a driving force for its sustained long-term growth,' Wuxi AppTec said in a statement to the Hong Kong stock exchange.
Wuxi AppTec's executives (L-R): Joint Company Secretary Yao Chi, Chairman Dr. Li Ge and Co-Chief Executive Officer Edward Hu during the company's IPO press conference on November 30, 2018. Photo: Edward Wong
Wuxi AppTec is following the footsteps of other Chinese novel drug developers in tapping the capital markets for funds. Innovent Biologics raised HK$4.27 billion on July 4, Ascentage Pharma sold HK$1.49 billion of shares last week, while Shanghai Junshi Biosciences raised HK$1.04 million last month following Duality Biotherapeutics' HK$1.64 billion initial public offer in April.
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Much of this bullishness has been driven by mainland investors buying shares in Hong Kong-listed Chinese biotech and pharmaceutical firms, according to Tony Ren, head of Asia healthcare research at Macquarie Capital.
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