Discounts of up to 20% to sprint Hong Kong stocks Jiangsu Hengrui Pharmaceuticals (600276.SH) is expected to be listed on May 23.

On May 15, 2025, the innovative pharmaceutical company Jiangsu Hengrui Pharmaceuticals (600276.SH) officially launched the global public offering of H shares, planning to issue 224,519,800 H shares (assuming the exercise of the over-allotment option and the adjustment option for the amount of shares sold) with 5.5% of the shares being offered in Hong Kong (12,348,600 shares) and 94.5% offered internationally (212,171,200 shares). The price range for the issuance is set at HK$41.45-44.05 per share. If the over-allotment option and the adjustment option for the amount of shares sold are fully exercised, the total number of H shares issued could reach up to 296,927,200 shares, with a maximum fundraising amount of HK$13.08 billion. This means that the fundraising amount for Jiangsu Hengrui Pharmaceuticals will be the highest for a pharmaceutical company IPO on the Hong Kong stock market in the past five years. The public offering of H shares in Hong Kong for Jiangsu Hengrui Pharmaceuticals is set to end on May 20, 2025, with the final issuance price expected to be determined by May 22 (inclusive of that day) at the earliest, and the company could potentially officially list on the Hong Kong Stock Exchange main board on May 23, realizing a dual listing in both A and H markets. The offering is underwritten by Morgan Stanley, Citigroup, and Huatai International as joint sponsors. Of particular note is the impressive lineup of cornerstone investors for Jiangsu Hengrui Pharmaceuticals' IPO, which has attracted the attention and participation of many internationally renowned institutional investors, including the Government of Singapore Investment Corporation (GIC), Invesco, UBS Global Asset Management (UBS-GAM), Hillhouse Capital, and Boyu Capital, among others. The cornerstone investors for Jiangsu Hengrui Pharmaceuticals have subscribed to or have prompted the subscription of a certain number of shares at the issuance price, amounting to over HK$4.1 billion (US$5.33 billion) at the mid-range price, representing 43.04% of the total issuance size (assuming the over-allotment option and the adjustment option for the amount of shares sold are not exercised). As for the use of proceeds from this Hong Kong listing, the prospectus indicates that after deducting issuance expenses, the funds raised will be used for research and development plans, building new production and research facilities in China and overseas markets, expanding or upgrading existing production facilities in China, working capital, and other general corporate purposes. Financially, Jiangsu Hengrui Pharmaceuticals' solid performance has been a significant endorsement for this IPO. In 2024, the company achieved operating income of RMB 27.985 billion, a year-on-year increase of 22.63%; net profit attributable to shareholders of the listed company was RMB 6.337 billion, a year-on-year increase of 47.28%; and non-GAAP net profit was RMB 6.178 billion, a year-on-year increase of 49.18%, setting record highs for both revenue and net profit. In the first quarter of 2025, the company continued its strong growth momentum, achieving operating income of RMB 7.206 billion, a year-on-year increase of 20.14%; net profit attributable to shareholders of the listed company was RMB 1.874 billion, a year-on-year increase of 36.90%; and non-GAAP net profit was RMB 1.863 billion, a year-on-year increase of 29.35%. Jiangsu Hengrui Pharmaceuticals sees the Hong Kong listing as a crucial step in its internationalization strategy. The wide base of international investors in the Hong Kong capital market will help enhance the company's global brand influence in the pharmaceutical industry. Furthermore, the listing will optimize the company's capital structure, open up new financing channels, and provide assistance for diversified financing. Additionally, going public will facilitate the company's expansion of overseas business and international research collaborations, strengthen its international presence, further penetrate overseas markets, and increase its global competitiveness.