South Korea’s Largest IPO Since 2017 Starts Taking Orders

(Bloomberg) -- SK Biopharmaceuticals Co. has started taking investor orders for what is set to be South Korea’s largest initial public offering in three years.

The company could raise as much as 959 billion won ($805 million) at the top of its price range. The sale comes as IPOs globally rebound, with last week being the biggest of the year for listings.

The South Korean market hasn’t seen such a large listing since Celltrion Healthcare Co. raised $897 million in 2017, according to data compiled by Bloomberg. 2020 has been quiet, with the largest IPO raising just $105 million, while last year’s biggest deal was a $353 million listing by Lotte REIT Co.

Biotech and health care companies have been drawing strong investor interest amid the coronavirus pandemic, with firms from the sector successfully listing in Hong Kong even as other issuers stayed on the sidelines.

But with markets recovering from a slump in March and economies beginning to reopen again, companies have started pushing forward with their listing plans. This year is set to be relatively busy for South Korea, with K-pop boy-band manager Big Hit Entertainment planning an IPO that local reports have said could value it at as much as 2 trillion won ($1.7 billion).

Read More: K-Pop Superstars’ Agency Files for IPO, Even as Concerts Shut

UPCOMING LISTINGS:

• JD.com Inc.
  • Hong Kong exchange
  • Size up to $4.1b
  • Pricing June 11, listing expected June 18
  • Bank of America, CLSA, UBS
• China Bohai Bank
  • Hong Kong exchange
  • Size about $2b
  • Pre-marketing from June 22
  • CCBI, Haitong, ABC International, CLSA
• SK Biopharmaceuticals
  • Korea stock exchange
  • Size up to $805m
  • Pricing June 19, listing around July 2
  • NH Investment & Securities, Citi, Morgan Stanley
• Hygeia Healthcare Holdings Co.
  • Hong Kong exchange
  • Pre-marketing from June 8
  • Morgan Stanley, Haitong
• Kangji Medical Holdings Ltd.
  • Hong Kong exchange
  • Pre-marketing from June 8
  • Goldman Sachs, Citic Securities, Bank of America
• Smoore International Holdings
  • Hong Kong exchange
  • Size at least $800m
  • Pre-marketing could start next week
  • CLSA
• Burning Rock Biotech Ltd.
  • Nasdaq
  • Size up to $209m
  • Pricing June 11 U.S. time
  • Morgan Stanley, BofA, Cowen & Co., CMBI, Tiger Brokers
• NetEase Inc.
  • Hong Kong exchange
  • Size $2.7b
  • Listing June 11
  • CICC, Credit Suisse, JPMorgan

More ECM situations we are following:

• China Bohai Bank Co., a mid-sized lender part-owned by Standard Chartered Plc, has gained approval from the Hong Kong stock exchange for its initial public offering that could raise more than $2 billion, according to a person familiar with the matter
• China Yongda Automobiles Services sells 120m shares at HK$8.29 apiece, according to the terms for the deal obtained by Bloomberg
• NetEase says Hong Kong listing retail offer 360.5x covered

See also:

• Asia ECM Weekly Agenda
• IPO data
• U.S. ECM Watch
• EU ECM Watch
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