SHENZHEN-LISTED clinical trial and research firm Hangzhou Tigermed Consulting will start to raise at least US$1 billion in its Hong Kong listing from today, according to sources with direct knowledge of the matter. The deal is unlikely to have cornerstone investors, one source said, which is unusual for a Hong Kong transaction. The decision was made by the board following meetings with prospective investors over the past week, the source added. The sources could not be named as the information has not been made publicly available. A Tigermed spokeswoman declined to comment on the company’s Hong Kong listing. Tigermed, which is already listed on the Shenzhen Stock Exchange, is the largest clinical research trial provider on the mainland, according to its draft prospectus posted on the Hong Kong stock exchange’s website. With a target of at least US$1 billion, Tigermed will be Asia’s most valuable health care transaction in 2020, topping WuXi Biologics’ US$984 million share placement in May, Refinitiv data show. The world’s largest health care IPO so far this year, according to Refinitiv, was SK Biopharmaceuticals’ deal in South Korea in June, which raised US$791 million. Tigermed’s regulatory filings in Hong Kong show it could sell up to 15 percent of its shares. The company’s Shenzhen share price has increased 66 percent so far this year, which could push the value of the Hong Kong offering higher. The Shenzhen-listed company has a US$12.3 billion market capitalization, according to Refinitiv. Cornerstone investors, whose shares are locked up for six months, are common features of Hong Kong initial public offerings with just two deals since 2017 worth more than US$1 billion not to feature them, according to Dealogic. Topsports raised US$1.1 billion in October last year and China Literature raised US$1.2 billion 2017, without the cornerstones buying in, the data showed. (SD-Agencies) |