Shanghai Pharma raises $2 billion from Hong Kong listing

China's second-biggest drug distributor prices its H-share offering below the mid-point, but at a modest 2.4% discount versus its A-shares.

Shanghai Pharmaceutical on Friday completed the largest initial public offering in Hong Kong this year after fixing the price below the mid-point of the range at HK$23. This allowed the company to raise HK$15.3 billion $2 billion, which shows that investors are willing to look beyond the rather nervous trading in other recent IPOs and invest in what they consider high-quality stocks.

Shanghai Pharma is an integrated producer and distributor of pharmaceuticals in China and the second largest drug distributor behind Sinopharm and hence offers good exposure to China’s rapidly growing healthcare industry a sector where there aren’t that many large and liquid stocks to invest...

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