China’s Tigermed to raise up to $1.38b in Hong Kong listing

Photo: Tigermed's LinkedIn page

Hangzhou Tigermed Consulting plans to raise up to $1.38 billion in its Hong Kong listing, which could make the Chinese clinical trial and research firm the largest healthcare transaction in Asia this year, according to a term sheet.

Tigermed, which is already listed in Shenzhen, is the largest clinical research trial provider in mainland China and will start trading on the Hong Kong Stock Exchange on Aug. 7.

The bookbuild started earlier in the day and the share price is scheduled to be set on Friday, the term sheet showed.

Each Tigermed stock could be priced between HK$88 and HK$100 and the company will sell 107.06 million shares in the deal, according to the term sheet.

At the price range, Tigermed will raise $1.21 billion to $1.38 billion and the shares sold represent 12.5% of the company.

The company did not immediately respond to a Reuters request for comment.

The transaction does not have cornerstone investors which is unusual for a Hong Kong deal, according to the term sheet.

The Chinese company is confident the deal would succeed without having major investors lined up before the launch, a source with direct knowledge of the matter said, requesting anonymity as he is not authorised to speak to media.

The size of the deal can be increased by exercising a so-called greenshoe to sell extra shares that could raise up to $1.58 billion.

If the deal succeeds, Tigermed could top WuXi Biologics’ $984 million share placement in May, Refinitiv data showed.

The world’s largest healthcare IPO so far this year was SK Biopharmaceuticals’ <326030.KS> deal in South Korea last month that raised $791 million, according to Refinitiv.

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.