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WuXi AppTec’s Hong Kong listing may raise up to HKD 8.3bn
Posted on Monday, 03 December 2018 12:34
Medical device testing-to-bioanalytical company WuXi AppTec has pulled the trigger on a secondary listing in Hong Kong that could fetch as much as HKD 8.33 billion (USD 1.06 billion).
The mainland-incorporated research and development (R&D) platform is selling 116.47 million shares at HKD 64.10 to HKD 71.50 apiece.
At this price range, the offer equates to a market capitalisation of HKD 74.66 billion to HKD 83.28 billion and unaudited pro forma adjusted consolidated net tangible assets of HKD 14.99 to HKD 15.71 per share.
Predecessor WuXi PharmaTechs was founded in 2000, went public on the New York Stock Exchange in 2007 and was taken private by management for USD 3.30 billion.
The takeover was backed by existing shareholder Hillhouse Capital and new incoming investors Ally Bridge, Boyu Capital and Temasek Life Sciences.
Now known as WuXi AppTec, the platform returned to the capital market this year, albeit at home rather than abroad, through an initial public offering worth CNY 2.25 billion (USD 323.33 million).
The Shanghai-headquartered company is the largest pharmaceutical R&D services provider in Asia by total revenue in 2017, according to the prospectus.
It has 27 operation sites and branch offices globally, including China, the US and countries in Europe, that provides discovery, development and manufacturing of drugs from concept to commercial production.
WuXi AppTec’s strategies range from expanding capacity and capabilities, bolstering its in-house R&D capabilities and acquisitions, increasing customer penetration and winning new customers.
The company generated revenue of CNY 4.41 billion and net profit of CNY 1.30 billion in the six months ended 30th June 2018, compared to CNY 3.67 billion and CNY 781.68 million, respectively, in H1 2017.
It had a return on equity of 30.6 per cent, a liquidity ratio of 1.6 per cent and net gearing ratio of 0.2 per cent, as of 30th June 2018.
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