▪ HUTCHMED has announced its long-anticipated Hong Kong IPO. This forms part of a global offering of 104m new shares. The offer provisionally consists of 13m shares (12.5%) being directed to the Hong Kong public offering and 91m (87.5%) for the International offer. An over-allotment option for up to an additional 15.6m shares, subject to a maximum of 15% of the offer, is also available. The shares may be re-allocated between the Hong Kong and International offers to reflect demand. The Hong Kong shares will be fully fungible with the shares represented by the NASDAQ ADSs (each ADS is equivalent to five shares) and AIM shares. ▪ The offer price will set on or around Wednesday June 23 (Hong Kong time) and will be based on expected investor demand as well as reflecting prices on the NASDAQ and AIM ahead of pricing. The maximum offer price will be $29 per ADS, equivalent to 415p per share, which suggests that gross funds of $600m- $690m could be raised dependent on whether the over-alloment is used in full. The offer period opened on June 18 and is expected to close on June 23. ▪ Cornerstone investors have agreed to subscribe to the equivalent of HK$2,535m, approximately $325m; which corresponds to 54% of the global offering at the maximum offer price (before any over-allotment). This group of new and existing investors includes The Carlyle Group, Canada Pension Plan, General Atlantic, HBM Healthcare Investments, and CICC. ▪ Use of funds will be directed towards progressing the extensive late-stage clinical programmes, developing the next waves of earlier stage compounds, strengthening the commercial infrastructure (both in China and globally), as well as bolstering the regulatory functions as more programmes approach approval and increasing manufacturing capacities to reflect expected demand. Interestingly, strategic acquisition opportunities are also mentioned.
21 Jun 2021
≥$600m Hong Kong IPO and global offer (104m shares)
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≥$600m Hong Kong IPO and global offer (104m shares)
HUTCHMED (China) Limited (HCM:LON) | 267 -2.7 (-0.4%) | Mkt Cap: 2,326m
- Published:
21 Jun 2021 -
Author:
Franc Gregori | Lala Gregorek -
Pages:
2
▪ HUTCHMED has announced its long-anticipated Hong Kong IPO. This forms part of a global offering of 104m new shares. The offer provisionally consists of 13m shares (12.5%) being directed to the Hong Kong public offering and 91m (87.5%) for the International offer. An over-allotment option for up to an additional 15.6m shares, subject to a maximum of 15% of the offer, is also available. The shares may be re-allocated between the Hong Kong and International offers to reflect demand. The Hong Kong shares will be fully fungible with the shares represented by the NASDAQ ADSs (each ADS is equivalent to five shares) and AIM shares. ▪ The offer price will set on or around Wednesday June 23 (Hong Kong time) and will be based on expected investor demand as well as reflecting prices on the NASDAQ and AIM ahead of pricing. The maximum offer price will be $29 per ADS, equivalent to 415p per share, which suggests that gross funds of $600m- $690m could be raised dependent on whether the over-alloment is used in full. The offer period opened on June 18 and is expected to close on June 23. ▪ Cornerstone investors have agreed to subscribe to the equivalent of HK$2,535m, approximately $325m; which corresponds to 54% of the global offering at the maximum offer price (before any over-allotment). This group of new and existing investors includes The Carlyle Group, Canada Pension Plan, General Atlantic, HBM Healthcare Investments, and CICC. ▪ Use of funds will be directed towards progressing the extensive late-stage clinical programmes, developing the next waves of earlier stage compounds, strengthening the commercial infrastructure (both in China and globally), as well as bolstering the regulatory functions as more programmes approach approval and increasing manufacturing capacities to reflect expected demand. Interestingly, strategic acquisition opportunities are also mentioned.