Hutchison China MediTech (Chi-Med), a China-based healthcare group backed by conglomerate Mitsui, raised $101.3m when it floated on Nasdaq yesterday.
The company sold 7.5 million American depositary shares, each representing half a normal Chi-Med share, priced at $13.50 each. The underwriters have a 30-day option to buy another 1.125 million shares, which would lift the size of the initial public offering to $116.4m.
Chi-Med develops and produces pharmaceuticals and healthcare consumer products, and is focusing on the development of treatments for oncology and immunological diseases. It has been listed on London’s Aim market since 2006.
The company has seven drug candidates in clinical testing, four of which are wholly owned with the other three being jointly developed with pharmaceutical firms.
The IPO proceeds will be used to advance several of those candidates through various stages of clinical studies, with a portion reserved for preclinical drug candidates.
Diversified conglomerate CK Hutchison has maintained a majority stake in Chi-Med post-IPO, despite its 64.9% share being diluted to just over 60%. Mitsui’s stake will be diluted from 5.7% to just over 5%.
BofA Merrill Lynch and Deutsche Bank Securities are joint global coordinators and joint bookrunners for the IPO, while Stifel, Canaccord Genuity, Panmure Gordon and Citic CLSA are serving as co-managers.
Chi-Med’s stock briefly peaked at $14.20 on its first day of trading before ultimately closing at $13.40.