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Henlius starts taking orders for its Hong Kong IPO
Posted on Wednesday, 11 September 2019 10:32
Shanghai Henlius Biotech has opened its books on an initial public offering (IPO) in Hong Kong that could be worth USD 477.00 million, according to a term sheet seen by the media.

CICC, Bank of America Merrill Lynch, CMB, Fosun Hani and Citigroup are joint sponsors for the flotation of shares at a price between HKD 49.60 and HKD 57.80 each (USD 6.33 to USD 7.37).

Bloomberg, citing the terms, said the listing, currently comprising 40.00 million stocks, could raise as much as USD 548.00 million if the overallotment option is exercised in full.

Henlius has roped in four cornerstone investors, including Qatar Investment Authority, which has committed to buying USD 90.00 million-worth of shares.

Bloomberg noted the Shanghai-headquartered biopharmaceutical company is expected to set a price, which Reuters indicated would equate to a pre-listing valuation of USD 3.00 billion to USD 3.50 billion, on the 18th September.

The news provider, still citing the term sheet, said it will be admitted to Hong Kong’s board on the 25th September.

Henlius claims to be the first biopharmaceutical company to receive new drug application approval from China’s food and drug watchdog for a monoclonal antibody biosimilar, and the first to commercially launch such a product in the country.

In addition to this revenue-generating medicine, the company has developed in-house over 20 biologic candidates and has several immuno-oncology combination therapies in its pipeline.

Henlius has three research facilitates located in Shanghai, Taipei and California, and its manufacturing plant is located in Shanghai, though it is planning to expand capacity at this site.

Proceeds raised in the IPO will fund ongoing clinical trials, regulatory filings and registrations for its drugs.

The global biologics market advanced at a compound annual growth rate of 7.7 per cent from USD 194.40 billion in terms of sales revenue in 2014 to US 261.80 billion 2018.

It is expected to increase by a further 9.0 per cent CAGR to USD 402.10 billion by 2023.

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