3SBio Attracts GIC, BlackRock to $712 Million Hong Kong IPO
May 26, 2015

By Fox Hu of BloombergBusiness

3SBio Inc., a Chinese producer of biopharmaceutical products, and its private-equity backer are seeking as much as $712 million from a Hong Kong initial public offering.

The company, based in the northeastern Chinese city of Shenyang, and an arm of Citic Private Equity Funds Management Co. are offering 606.1 million shares at HK$8.30 to HK$9.10 apiece, according to terms for the deal obtained by Bloomberg. New shares account for 80 percent of the sale, the terms show.

3SBio is adding to the $11.9 billion of first-time share sales in Hong Kong this year after the city’s stock market surged to a seven-year high on an influx of Chinese money. The company’s products are used to counteract the side effects of chemotherapy in cancer patients and treat anemia in people suffering from chronic kidney disease.

The company, which was taken private two years ago, is seeking a valuation of as much as $2.85 billion from relisting in Hong Kong. The figure is more than seven times 3SBio’s value when it last traded on the Nasdaq market in May 2013, data compiled by Bloomberg show.

Six cornerstone investors agreed to buy a total of $150 million in stock in the offering. Singapore sovereign wealth fund GIC Pte will invest $30 million, while BlackRock Inc. funds have committed to buy $40 million of shares, the terms show.

Citic Securities Co., Goldman Sachs Group Inc. and Morgan Stanley are joint sponsors of the offering. 3SBio plans to use 45 percent of the proceeds to fund acquisitions that will expand its pharmaceutical portfolio in therapeutic areas, according to the terms. 3SBio aims to price the offering on June 4 and start trading a week later.

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