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Fosun Pharma Announces Subscription Results
News & Events 2012.10.30 1484

 

Offer Price Set at HK$11.80 per Offer Share

Debut Trading on 30 October 2012

[29 October 2012, Hong Kong] Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun Pharma” or the “Company” and, together with its subsidiaries, the “Group”), a leading healthcare company in the PRC, today announced the subscription results of its international offering and Hong Kong public offering. The offer price is set at HK$11.80 per offer share. Dealing in the Fosun Pharma’s shares will begin on the Main Board of The Stock Exchange of Hong Kong Limited (“SEHK”) on 30 October 2012 (Tuesday) under the stock code 2196 with board lots of 500 shares each.

As the world's second largest IPO in the pharmaceutical industry since 2012, Fosun Pharma attracted numerous various international institutional investors in the H shares international offering, including sovereign wealth funds, international long-term funds, insurance funds and Asian and European private banking customers. Fosun Pharma was also oversubscribed for more than 2 times in the Hong Kong Public Offering, and has become one of the most popular IPO this year. The net proceeds from the global offering to be received by the Company are estimated to be approximately HK$3,764.4 million after deduction of related underwriting commissions and expenses and before exercising of the over-allotment option. 48% of the net proceeds will be applied primarily for acquisitions and consolidation of the Group in the areas of pharmaceutical manufacturing, pharmaceutical distribution and retail, healthcare services and diagnostic products and medical devices.

- Cont’d -

As one of the fastest growing markets in the world, we believe China’s pharmaceutical market will become the world's second-largest market in the next 5-10 years. Currently, the top 10 United States pharmaceutical companies occupied 77.8% market share in the United States market, while the China’s top 100 pharmaceutical companies only occupied 40% of the market share, and the top 10 companies accounted for less than 16% of the market share in China’s pharmaceutical market. We believe there’s enormous potential of room for growth in the market share of the leading pharmaceutical companies in China.

According to IMS Health Incorporated, Fosun Pharma was one of the top five domestic pharmaceutical companies in the PRC by revenue from the pharmaceutical manufacturing segment in 2011. Since listed on the Shanghai Stock Exchange 14 years ago, the Group’s net profit has increased for 21 times, and its CAGR has also reached 26.72%. Besides SSE 180 Index, CSI 300 Index, SSE Dividend Index, SSE Corporate Governance Index, Fosun Pharma has also been successfully included in the SSE Private Enterprise 50 Index and SSE Social Responsibility Index. As a leading healthcare company in the PRC, the Group’s business operations strategically covers multiple important segments in the healthcare industry value chain, and has strong research and development capabilities and a robust product pipeline that is focused on biopharmaceutical drugs. Moreover, the Group is a pioneer in the premium, specialty and general healthcare services market among leading healthcare enterprises in China. Fosun Pharma holds a 32.1% equity interest in Sinopharm and is its second largest beneficial shareholder. Sinopharm has been the largest pharmaceutical distributor in China currently, and has a distribution network that covers more than half of the hospitals in China.

Fosun Pharma has maintained a relatively high growth, with revenue and gross profit in 2009-2011 growing with a CAGR of 29.3% and 40.3% respectively. The consolidated forecast profit attributable to owners of the Company is expected to amount to not less than RMB1.49 billion, increased by 27.8% as compared to the same period last year, which promised a huge potential to grow in China.

- Cont’d -

UBS AG, Hong Kong Branch (“UBS”), China International Capital Corporation Hong Kong Securities Limited (“CICC”), J.P. Morgan Securities (Asia Pacific) Limited (“JPM”) and Deutsche Bank AG, Hong Kong Branch (“DB”) are the Joint Global Coordinators, UBS Securities Hong Kong Limited, CICC, J.P. Morgan Securities (Far East) Limited and DB are the Joint Sponsors, UBS, CICC, JPM and DB are the Joint Bookrunners and Joint Lead Managers for the Hong Kong Public Offering, UBS, CICC, J.P. Morgan Securities plc , DB, ABCI Securities Company Limited and Haitong International Securities Company Limited are the Joint Bookrunners and Joint Lead Managers for the International Offering in the global offering.

Mr. Chen Qiyu, Executive Director and Chairman of Fosun Pharma, said, “We are honored to have solid support from investors towards our H shares listing. The successful listing on the SEHK is an important milestone for the Company to enter the international capital market. Currently, we continue to invest in innovative research and development, increase our market share in the pharmaceutical manufacturing and other business segments in the PRC market, and consolidate and further enhance our leading position in the industry. Through acquisitions of foreign enterprises that has advantages or high potential in its business in China, and the pharmaceutical enterprises that possess unique product line, R&D abilities and sales network, Fosun Pharma strive to speed up the implementation of the globalization strategy. With the rapid growth in the PRC healthcare market, Fosun Pharma is well positioned to seize opportunities in the PRC healthcare market with high potential and reward investors with the greatest benefits. We are confident that the Company’s business results will have a rapid growth in the future.”