China medical tech platform WuXi AppTec launches US$1bil HK listing

HONG KONG: Shanghai-listed Chinese medical tech platform WuXi AppTec has launched a Hong Kong listing of up to US$1.06bil, braving weak markets and testing investor sentiment after a string of badly performing initial public offerings (IPOs).

WuXi’s listing comes after other companies have had to drastically scale back their funding ambitions because of jittery markets, such as online parenting firm Babytree Group and online travel agent Tongcheng-Elong.

Others still have put off their IPO plans as they wait out the market uncertainty.

That makes WuXi’s hopes of raising between US$954mil and US$1.06bil especially ambitious.

The company is selling 116.47 million shares at a price range of HK$64.1 to HK$71.5 (US$8.19-US$9.13), a discount of between 19% and 27% to its closing price of 78.36 yuan (US$11.27) on Tuesday, according to two sources familiar with the deal.

The company could raise up to US$1.2bil if a greenshoe, or over-allotment option, is exercised.

Hong Kong is on track to become the world’s top IPO centre by volume this year, with US$33.2bil raised so far, Refinitiv data show.

But most deals have sunk below their IPO prices, buffeted by concerns over a worsening China-US trade war and slowing China growth that have roiled markets.

Chinese food delivery-to-ticketing services company Meituan Dianping raised US$4.2bil in its September IPO in what was the world’s biggest Internet-focused listing in four years, but its shares have since slumped over 30%.

Smartphone maker Xiaomi has also fallen 14.5% since listing in July, while the Hong Kong benchmark index has fallen 11% this year.

Shanghai-based WuXi describes itself as the largest global pharmaceutical R&D services platform in Asia by revenue, providing research and manufacturing services and testing services for medical devices. — Reuters