By P.R. Venkat
Hutchmed (China) Ltd. is planning to raise more than US$600 million through a listing in Hong Kong, becoming the latest U.S.-listed Chinese company seeking to tap the Asian financial center's equity market.
Hutchmed (China), which is majority-owned by conglomerate CK Hutchison Holdings Ltd. and specializes in treatments for cancer and immunological diseases, is planning to sell 104 million shares to raise up to 4.68 billion Hong Kong dollars (US$602.8 million), it said Friday.
The Nasdaq-listed company has set a maximum offer price of HK$45 a share.
The planned IPO is the latest in a string of multi-billion-dollar deals happening in Hong Kong, many of which involve Chinese technology startups or other companies catering to China's increasingly affluent consumers.
Earlier this year Tencent Holdings Ltd.-backed Kuaishou Technology, which competes with ByteDance Ltd., raised US$5.4 billion in an IPO. Other companies such as Baidu Inc., which is listed on the Nasdaq, raised nearly US$3.1 billion in its Hong Kong offering.
Hutchmed said Friday that five cornerstone investors, including the Carlyle Group Inc., Canada Pension Plan Investment Board and General Atlantic, had agreed to subscribe to nearly HK$2.54 billion worth of shares ahead of the offering.
The company intends to use the IPO proceeds to fund its business expansion and potential M&A.
Hutchmed expects to finalize the IPO price on June 23 and shares are likely to start trading on the Hong Kong Exchange from June 30.
Morgan Stanley, Jefferies and Credit Suisse are among the banks advising Hutchmed on the offering.
Write to P.R. Venkat at firstname.lastname@example.org
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