Chinese clinical research firm Tigermed seeks over $1b in HK listing

Photo: Tigermed's LinkedIn page

Chinese clinical trial and research firm Hangzhou Tigermed Consulting will start to raise at least $1 billion in its Hong Kong listing from Monday, according to two sources with direct knowledge of the matter.

The deal is unlikely to have cornerstone investors, one source said, which is unusual for a Hong Kong transaction. The decision was made by the board following meetings with prospective investors over the past week, the source added.

The sources could not be named as the information has not been made publicly available.

Tigermed did not immediately respond to a request for comment from Reuters.

Tigermed, which is already listed in Shenzhen, is the largest clinical research trial provider in mainland China, according to its draft prospectus posted on the Hong Kong Stock Exchange website.

With a target of at least $1 billion, Tigermed will be Asia’s most valuable healthcare transaction in 2020, topping WuXi Biologics’ $984 million share placement in May, Refinitiv data shows.

The world’s largest healthcare IPO so far this year, according to Refinitiv, was SK Biopharmaceuticals’ deal in South Korea in June which raised $791 million.

Tigermed‘s regulatory filings in Hong Kong show it could sell up to 15% of its shares. The company’s Shenzhen share price has increased 66% so far this year, which could push the value of the Hong Kong offering higher.

The Shenzhen listed company has a $12.3 billion market capitalisation, according to Refinitiv.

Cornerstone investors, whose shares are locked up for six months, are common features of Hong Kong IPOs with just two deals since 2017 worth more than $1 billion not to feature them, according to Dealogic.

Topsports raised $1.1 billion in October last year and China Literature raised $1.2 billion 2017, without the cornerstones buying in, the data showed.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.