July 27, 2020 / 2:41 AM / 12 days ago

China's Tigermed to raise up to $1.38 billion in Hong Kong listing

HONG KONG (Reuters) - Hangzhou Tigermed Consulting (300347.SZ) plans to raise up to $1.38 billion in its Hong Kong listing, which could make the Chinese clinical trial and research firm the largest healthcare transaction in Asia this year, according to a term sheet.

Tigermed, which is already listed in Shenzhen, is the largest clinical research trial provider in mainland China and will start trading on the Hong Kong Stock Exchange on Aug. 7.

The bookbuild started earlier in the day and the share price is scheduled to be set on Friday, the term sheet showed.

Each Tigermed stock could be priced between HK$88 and HK$100 and the company will sell 107.06 million shares in the deal, according to the term sheet.

At the price range, Tigermed will raise $1.21 billion to $1.38 billion and the shares sold represent 12.5% of the company.

The company declined to comment on its Hong Kong listing plans.

The transaction does not have cornerstone investors which is unusual for a Hong Kong deal, according to the term sheet.

The Chinese company is confident the deal would succeed without having major investors lined up before the launch, a source with direct knowledge of the matter said, requesting anonymity as he is not authorised to speak to media.

The size of the deal can be increased by exercising a so-called green shoe to sell extra shares that could raise up to $1.58 billion.

If the deal succeeds, Tigermed could top WuXi Biologics’ (2269.HK) $984 million share placement in May, Refinitiv data showed.

The world’s largest healthcare IPO so far this year was SK Biopharmaceuticals’ 326030.KS deal in South Korea last month that raised $791 million, according to Refinitiv.

Reporting by Scott Murdoch in Hong Kong; editing by Sherry Jacob-Phillips and Jason Neely

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