Hutchison China MediTech (Chi-Med), a China-based biopharmaceutical company, plans to float in the US in an initial public offering that could be sized at up to $115m.
Chi-Med intends to issue approximately 6.1 million American depositary shares, each representing half a normal share.
Since 2006, the company has been listed on the Aim market in the UK, where its shares are priced at £23.07 ($32.82) at time of publication, meaning an equivalently priced IPO would raise almost $100m.
Chi-Med is developing targeted treatments for oncology and immunological diseases and seven of its drug candidates have reached the clinical stage, five having achieved proof-of-concept.
Up to $41m will support the development of clinical-stage drug candidates for which Chi-Med retains worldwide rights.
Another $27m will go to sharing the clinical development costs of the three drug candidates it is co-developing with partners AstraZeneca, Eli Lilly and Nestlé Health Science respectively, while a further $11m has been earmarked for preclinical drug candidates.
Mitsui owns 3.2 million ordinary shares, equating to a 5.7% stake in Chi-Med that will be diluted to 5.4% in the offering. Diversified conglomerate CK Hutchison owns a majority stake that will be cut from 64.9% to 61.5%.
BofA Merrill Lynch and Deutsche Bank Securities are serving as joint global coordinators and joint bookrunners for IPO, while Stifel, Canaccord Genuity, Panmure Gordon and Citic CLSA have been appointed co-managers.