Transaction Overview
Simcere Pharmaceutical Group Limited. ("Simcere", Stock code: 2096.HK) is successfully listed on the Hong Kong Stock Exchange on October 27, 2020. CMBI acted as Joint Bookrunner and Joint Lead Manager for this IPO.
Simcere is a company engaged in the R&D, production and commercialization of pharmaceuticals. Simcere has a diversified product portfolio in its strategically focused therapeutic areas, including, (i) oncology (including cell therapy), (ii) central nervous system diseases and (iii) autoimmune diseases. According to Frost & Sullivan, together, these therapeutic areas accounted for 24.7% of the total PRC pharmaceutical market in terms of sales revenue of pharmaceuticals in 2019 and grew faster than the overall PRC pharmaceutical market from 2015 to 2019, a trend which is expected to continue overall in the near future, according to Frost & Sullivan. Simcere was the first pharmaceutical company with both biologics and small molecule drugs in China listed on the NYSE at the time of listing in 2007, and Simcere subsequently privatized the Company in 2013.
Simcere issued 260,569,000 shares (assuming the Over-allotment Option is not exercised), and the offering price was set at HK$13.70, and the offering amount was approximately HK$3,570 million (assuming the Over-allotment Option is not exercised). The offering has been widely recognized by international and domestic investors, and over-subscribed in International Offering and Hong Kong Offering. The investment from International Offering investors represented approximately 50% of the total offer size (assuming the Over-allotment Option is not exercised), and Hong Kong Public Offering has been 589.47 times oversubscribed.
Acting as the Joint Bookrunner and Joint Lead Manager, CMBI assisted the company to attract a number of International long-only funds, healthcare-dedicated funds and top Chinese long-only funds and insurance funds, perfectly demonstrating CMBI's broad investor coverage and strong underwriting capability. The Company thought highly of the contribution of CMBI in underwriting process, especially contribution to the high-quality book.
The listing of Simcere in Hong Kong Stock Exchange Main Board is the 18th healthcare sector equity transaction completed by CMBI from 2019. This deal has consolidated the CMBI’s leading position in the healthcare sector. The successful completion of the global offering is another classic showcase of CMBI in serving China New Economy clients.
Source: Prospectus and Company Announcement
About Simcere
Simcere is a company engaged in the R&D, production and commercialization of pharmaceuticals. Simcere has a diversified product portfolio in its strategically focused therapeutic areas, including, (i) oncology (including cell therapy), (ii) central nervous system diseases and (iii) autoimmune diseases. According to Frost & Sullivan, together, these therapeutic areas accounted for 24.7% of the total PRC pharmaceutical market in terms of sales revenue of pharmaceuticals in 2019 and grew faster than the overall PRC pharmaceutical market from 2015 to 2019, a trend which is expected to continue overall in the near future, according to Frost & Sullivan. Simcere was the first pharmaceutical company with both biologics and small molecule drugs in China listed on the NYSE at the time of listing in 2007, and Simcere subsequently privatized the Company in 2013.
Source: Prospectus
Disclaimer
This material is for reference only. Investor should rely only on the information contained in the Prospectus of this Global Offering to make investment decision.
