Hengrui, a pharmaceutical company based in Jiangsu province, China, has announced plans to raise funds through the sale of 224.5 million shares on the Hong Kong stock exchange. The offering could generate up to 9.89 billion Hong Kong dollars (€1.13 billion), according to a statement delivered to the semi-autonomous Chinese region’s stock market.
The company has indicated that a significant portion of the funds raised will be directed towards research and development projects, as well as the construction of new pharmaceutical research and production facilities both domestically and internationally.
Originally established in 1970 as a state-owned producer of generic drugs, Hengrui transitioned into new drug development following its privatization in the 1990s.
The initial public offering has already garnered commitments from seven institutional investors, including Singapore’s sovereign wealth fund GIC and US investment firm Invesco Advisers, amounting to 533 million US dollars (€475 million).
The company, which is already listed on Shanghai’s stock exchange, China’s financial hub, is set to begin trading on the Hong Kong stock exchange on May 23.
This IPO comes shortly after Contemporary Amperex Technology (CATL), the world’s leading manufacturer of electric vehicle batteries, also announced its own initial public offering. CATL aims to raise at least 31 billion Hong Kong dollars (€3.56 billion) in its debut on the Hong Kong exchange scheduled for May 20.
CATL has indicated that 90% of the funds raised will support the expansion of its operations in Hungary, alongside projects in Germany, Spain, and Indonesia.
