Fosun Pharma seals rare H-share placement

The privately-held drug maker raised $296 million from a fully-upsized placement of new H-shares, marking just the second time in nearly three years that a Hong Kong-listed company has sold new shares through a block sale.

Shanghai Fosun Pharma, the pharmaceutical unit of the highly-acquisitive Chinese conglomerate Fosun Group, took advantage of a strong rally in its stock price to raise HK$2.3 billion $296 million from a placement of H-shares on Tuesday night.

Fosun Pharma originally pitched a deal of 55 million shares, or 12% of its existing H-share capital. But the deal was quickly met with demand worth multiple times the shares on offer, allowing the company to exercise a greenshoe option of 25 million shares, said a source familiar with the situation.

In the end the company sold 80 million shares, representing 20% of its existing H-share capital,...

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