fosun pharma announces plan to place h-shares to support dyanmic prc and global growth
(march, 26, 2014-hong kong) fosun pharmaceutical (group) co., ltd.("fosun pharma" or the “company”; stock code: 600196-sh, 02196-hk), a leading healthcare company in the prc announces on march 26, 2014 its plan to place 67,214,000 h shares at the placing price of hk$26.51 per h share(exclusive of brokerage, if any)..
the net proceeds of the placing will be approximately hk$1,760.89 million. the company intends to use the net proceeds from the placing of the placing shares to replenish the working capital of the group, and finance potential mergers and acquisitions domestically or overseas. ubs ag hong kong branch, j.p. morgan securities (asia pacific) limited and ccb international capital limited serve as placing agents.
attractive placement pricing terms
to bring capital for business development
the placing price of hk$26.51 per h share represents discount of approximately 4.98% to the closing price of hk$27.90 per h share as quoted on the stock exchange on 26 march 2014, the last trading day prior to the entering into of the placing agreement; the placing shares represent 20.00% and 2.99%, respectively, of the existing total issued h shares and the total issued share capital of the company as at the date of this announcement and 16.67% and 2.91%, respectively, of the total issued h shares and the total issued share capital of the company as enlarged by the issue of the placing shares.
according to market sources, this placement is winning enthusiastic reaction from investors of the hong kong and european thanks to its highly competitive placing price discount of less than 5% compared to similar recent private placement deals in hong kong.
focusing on pharmaceutical manufacturing and healthcare services to sustain robust growth
fosun pharma’s robust financial and business performance also contributes to the market’s positive response. in 2013, the company recorded revenue of rmb9,921 million, up by 36.31% over 2012.
in a breakdown, revenue of pharmaceutical manufacturing and r&d business segment was rmb6,524 million, representing a year-on-year increase of 40.82%. in 2013, the company had 15 formulation items and series with sales over rmb100 million; also, the number of formulations that gained sales volume as much as rmb100 million has increased to 15 in 2013 from 11 in 2012.
in healthcare services the company recorded a total revenue of rmb475 million, increased by 198.74% year on year. fosun pharma now has in place its strategic deployment of healthcare services business that combines high-end healthcare institutions in the more developed coastal cities and specialty and general hospitals in second-tier and third-tier cities in the prc. newly-acquired assets and operations play a key role in this dynamic growth process.
fosun pharma also is making significant breakthroughs in its internationalization drive. the cross-border acquisition of alma lasers, a leading global manufacturer of cosmetic medical devices, and investments into saladax biometical and oxford effectively contributes to business expansion overseas.