Date
11 December 2018
WuXi AppTec will use its Hong Kong listing proceeds on several expansion projects, including a Chengdu R&D campus. Photo: Bloomberg
WuXi AppTec will use its Hong Kong listing proceeds on several expansion projects, including a Chengdu R&D campus. Photo: Bloomberg

China’s WuXi AppTec raises US$1.01 bln in HK listing: report

Chinese medical tech platform WuXi AppTec raised US$1.01 billion in its Hong Kong listing, valuing the company at US$10.2 billion, Reuters reports, citing sources.

WuXi, which is already listed in Shanghai, priced its Hong Kong shares at HK$68 (US$8.71) apiece, at the middle of an indicated range of HK$64.1-HK$71.5, according to the report.

The company could raise up to US$1.16 billion if an over-allotment option is exercised within a month of the start of trading.

One source told Reuters that WuXi could have priced higher, but wanted to leave money on the table because of volatile markets this week.

Shanghai-based WuXi describes itself as the largest pharmaceutical R&D services platform in Asia by revenue.

The company had revenues of 4.41 billion yuan (US$641 million) in the first half of this year, compared with 3.67 billion yuan in the corresponding period last year, according to its listing prospectus. Its profits jumped 67 percent to 1.3 billion yuan in the first half.

WuXi intends to use the proceeds from the Hong Kong listing to expand capacity across its units globally, invest in seven China projects such as a Chengdu R&D campus, and set up a bio-analytical laboratory in San Diego, California.

It also intends to fund the acquisition of contract research organization companies.

WuXi shares will begin trading in Hong Kong on Dec. 13.

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RC

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