Shanghai Henlius Biotech launches $477m HK IPO, testing market amid protests

Photo by Louis Reed on Unsplash

Shanghai Henlius Biotech, backed by Chinese conglomerate Fosun International (0656.HK), launched on Wednesday its Hong Kong IPO of up to $477 million, a term-sheet showed, the first sizeable float to test market sentiment amid the city’s political unrest.

The company, which started gauging investor demand on Aug. 26, is selling 12% of its enlarged share capital in the initial public offering at a price range of HK$49.6 to HK$57.8 ($6.33-$7.37), according to the term sheet seen by Reuters.

The price range represents a valuation of about $3 billion-$3.5 billion prior to the float, versus $3 billion in a pre-IPO fundraising in November 2018.

Henlius has also lined up a total of $140 million from four cornerstone investors. Qatar Investment Authority has made the biggest commitment of $90 million, the term-sheet shows.

The float will be a key gauge of investor appetite after China’s Alibaba Group Holding Ltd (BABA.N) last month delayed plans for a $15 billion listing amid the city’s political turmoil.

Henlius, a developer of innovative drugs and biosimilars – which are not exact replicas but are as effective as the original drug, did not immediately respond to a request for comment.