US and London-listed HutchMed (China) has launched a secondary listing in Hong Kong that could raise up to US$590m based on its US close of US$28.36 on Thursday.
The biopharmaceutical company, which counts CK Hutchison as its largest shareholder with a 44.7% stake, is selling 104m primary shares, representing 12.3% of the enlarged share capital. One American depositary share is equal to five ordinary shares.
There is a maximum offer price of HK$45 that is applicable on the retail tranche only. About 87.5% of the float is earmarked for institutional investors and 12.5% for retail investors.
The deal has drawn five cornerstone investors for a combined US$325m. They are Carlyle (US$210m), CPP Investments (US$50m), General Atlantic (US$30m), HBM Healthcare Investments (US$20m) and CICC Grandeur (Xiamen) Equity Investment Fund (US$15m).
IFR reported last week that HutchMed had won listing approval from the Stock Exchange of Hong Kong for the share sale and that it may consider a Shanghai Star IPO after the Hong Kong listing.
The deal will price on June 23 and the shares will list on June 30.
HutchMed, formerly known as Hutchison China MediTech, abandoned a Hong Kong listing attempt in 2019 because of choppy market conditions.
The company plans to use the proceeds to advance late stage clinical programs, support further proof-of-concept studies, strengthen integrated capabilities across commercialisation, clinical and regulatory and manufacturing, and for working capital.
CICC, Jefferies and Morgan Stanley are the sponsors.