Reckitt Benckiser Joins China Drugs IPO
The $2 billion initial public offering launched last week in Hong Kong by Chinese state-backed China Resources Pharmaceutical, the country’s second-largest drugmaker, attracted support from UK-based Reckitt Benckiser, Japan’s Fujifilm and Anbang Investments, one of the largest insurance groups in China. The company, which manufactures and distributes drugs in the People’s Republic, has a portfolio that includes well-known brands and annual sales of around $19 billion, placing it almost on a par with top-level global players such as Bristol-Myers Squibb and Japan’s Takeda. The shares were offered at between HK$8.45 and HK$10.15 apiece.
Altogether, reports said, cornerstone investors have signed up to take $916 million of the offering, worth as much as 54%, thereby agreeing a six-month lock-up on their holding in return for large allocations. Fujifilm has signed up to take shares worth $105 million, with Reckitt Benckiser and Anbang Investment Holding signing up to take $50 million each. Banks leading the sale were Bank of America Merrill Lynch and China Construction. The shares were due to begin trading on Oct. 20.