Investors Bet on Rising Demand From China's Aging Population
Investors Bet on Rising Demand From China's Aging Population
(Bloomberg) -- Venus MedTech (HangZhou) Inc. is adding fuel to a boom of health-care IPOs in Hong Kong, as investors bet on rising demand from China’s aging population.
The Chinese developer of cardiovascular devices began taking orders Tuesday, counting big names including Singapore’s sovereign fund GIC Pte among its cornerstone investors. Venus is seeking as much as $331 million from the sale, with an expected Dec. 10 listing.
Health-care initial public offerings have raised $4.4 billion in Hong Kong since January, setting a record for the first 11 months and marking an almost 30% growth over the same period last year, according to data compiled by Bloomberg. Proceeds from Venus and drugmaker Alphamab Oncology, which started gauging investor demand last week for a listing in the city, could boost the full-year tally to a record $5 billion. Alphamab may raise as much as $300 million, according to IFR Asia.
Another Chinese drugmaker, Pharmaron Beijing Co., will start trading in Hong Kong on Thursday after raising $589 million. The company priced shares at the top of a marketed range last week, with Oaktree Capital Management and OrbiMed Capital among cornerstone investors.
Health-care IPOs have rewarded investors with strong rallies in the city. The sector’s 15 new stocks this year have jumped on average 35% since their listings, adjusting for IPO sizes, data compiled by Bloomberg show. Vaccine developer CanSino Biologics Inc. stands out, with a rally of more than 130% from its offer price.
UPCOMING LISTINGS:
- Postal Savings Bank of China
- Shanghai exchange
- Size $4.1b
- Taking orders Nov. 28; listing date TBA
- Citic Securities, CICC, China Post Securities, UBS Securities
Pharmaron Beijing
- Hong Kong exchange
- Size $589m
- Listing Nov. 28
- CLSA, Goldman Sachs, Orient Capital
- Venus MedTech
- Hong Kong exchange
- Size up to $331m
- Taking orders from Nov. 26; listing Dec. 10
- Goldman Sachs, CICC, Credit Suisse, China Merchants Securities
- China Merchants Commercial REIT
- Hong Kong exchange
- Size up to $400m
- Listing date TBA
- Citigroup
- Alphamab Oncology
- Hong Kong exchange
- Size $200m-$300m
- Started gauging demand Nov. 18
- Morgan Stanley, Jefferies, CLSA
- Bangkok Commercial Asset Management
- Thailand stock exchange
- Size up to $887m
- Taking orders from Nov. 25; listing date TBA
- Trinity Securities, Kasikorn Securities, UBS
More ECM situations we are following:
- Alibaba Group Holding opened 6.3% higher in its Hong Kong debut, following a $11.2 billion share sale
- Consumer goods producer Uni-Charm Indonesia seeks to sell a maximum 20% stake in an IPO, planning a Dec. 20 listing
- Home First Finance aims to file the draft prospectus for an IPO as early as next week: IFR Asia
- State Bank of India expects a valuation of between 53,000 and 60,000 crore rupees for its cards unit in an IPO: Bloomberg Quint
- China Zheshang Bank dipped below its offer price on an intraday basis, as the lender debuted in Shanghai following a $1.9 billion share sale
- SK Biopharmaceuticals may raise more than $850 million in a January IPO in South Korea: FT
SEE ALSO
- Asia ECM Weekly Agenda
- IPO data
- U.S. ECM Watch
- EU ECM Watch
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To contact the reporter on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net
To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Cecile Vannucci, Liau Y-Sing
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