Major Chinese pharma firm plots a $3 billion IPO in Hong Kong
- Jiangsu Hansoh Pharmaceutical Company is planning a $3 billion IPO on the Hong Kong exchange as early as July, according to sources speaking to Dow Jones.
- Pharmaceutical spending in China increased by 14% between 2014 and 2015, to more than $100 billion.
- Chinese healthcare companies were active in Hong Kong markets last year. In 2015, healthcare companies raised a total of $2.6 billion via Hong Kong IPOs, up from $1.1 billion the year before, according to Dealogic data.
The Chinese pharmaceutical market is trending upward, not only because of its recent rapid growth, but also due to the long-term opportunities in China. As the middle class grows and China's large population begins to age, the healthcare market in China should see continued growth over the long term.
Established in 1995, Hansoh Pharma is involved in R&D, manufacturing, and sales across a number of therapeutic areas.
Hansoh plans to file with the Hong Kong exchange as early as March, with the goal of potentially completing the listing by July. Assuming the deal is executed, Hansoh's IPO would be the largest ever on the Hong Kong market, including Shanghai Pharmaceuticals' $2 billion IPO in 2011.