Pharma companies plan offshore IPOs
18 August 2008
China National Pharmaceutical Group (Sinopharm) is planning an initial public offering in Hong Kong to raise up to US$750 million, possibly in the fourth quarter, while CITIC Pharmaceutical may pursue a US$200 million listing in New York next year, the South China Morning Post reported. Sinopharm, China's largest pharmaceutical company, plans to spin off its distribution and medicine-making subsidiaries, both of which are listed on the mainland. Analysts said both companies could do well despite the poor overall performance of listings this year, as the drug industry tends to be less affected by economic conditions. The 10 largest Hong Kong-listed pharmaceutical firms have dropped by an average of 17.3% this year, while the market's overall decline has been 23.91%.