Sihuan Pharma prices second largest healthcare IPO this year

The Chinese manufacturer of cardio-cerebral vascular drugs raises $741 million by pricing its shares at 26.7 times next year's earnings, making it the most expensive new stock to list in Hong Kong this year.

Sihuan Pharmaceutical, a Chinese manufacturer of cardio-cerebral vascular drugs, has pulled off another popular initial public offering in Hong Kong despite a fairly dear price, bucking an earlier trend of companies needing inexpensive valuations to be able to attract a decent amount of funds.

The company raised HK$5.75 billion $741 million after pricing its shares at HK$4.60 apiece, the top end of the indicated range. The price translates into a price-to-earnings PE ratio of 26.7 times,...

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