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Morgan Stanley Snaps Up Asia Health Care Deals

Morgan Stanley Snaps Up Asia Health Care Deals

When it comes to equity offerings in the health-care sector, Morgan Stanley has a solid lead.

The U.S. bank has a 28% market share for health-care equity offerings in Asia this year, including follow-on share sales and initial public offerings, according to Bloomberg League Tables. That is almost three times the 10% share that runner-up JPMorgan Chase & Co. has, while Citigroup Inc. comes in third with 9%.

Here is a look at the top managers for such deals this year in Asia Pacific:

ManagerIssuesTable Share (%)
Morgan Stanley2027.86
JPMorgan49.84
Citi89.05
UBS76.08
CICC95.84
Goldman Sachs94.08

Companies from the health-care and biotech sectors have attracted huge investor interest in the past few months, managing to pull off IPOs in the midst of the coronavirus pandemic while other companies stayed on the sidelines. Meanwhile, shareholders were able to monetize stakes through block trades after the market recovered from a slump in March. The health-care industry in China is expected to expand as people’s demand for everything from cancer diagnosis to diabetes treatments increases.

Last Friday, four Asian health-care and biotech companies raised $1.74 billion in their IPOs, all of which priced at the top. Both Morgan Stanley and Citigroup worked on SK Biopharmaceuticals Ltd.’s $793 million offering last week, which was South Korea’s biggest listing in three years and priced at the top of its range.

Morgan Stanley also benefits in league tables from a slew of sell-downs by Wuxi Biologics Cayman Inc.’s parent, which this year has offloaded $2.3 billion worth of stock in three block trades, according to data compiled by Bloomberg. The firm captured the league table credit in all of those trades as the sole bookrunner.

In terms of the number of deals, the Wall Street bank also far outstrips its competitors, working on 20 health-care equity offerings this year. Goldman Sachs Group Inc. and China International Capital Corp. follow with nine deals each. This week, Morgan Stanley and Goldman Sachs are working together on two Hong Kong health-care IPOs: Shenzhen Hepalink Pharmaceutical Group and Ocumension Therapeutics.

UPCOMING LISTINGS:

  • Ocumension Therapeutics
    • Hong Kong exchange
    • Pre-marketing from June 22
    • Morgan Stanley, Goldman Sachs
  • Agora
    • Nasdaq
    • Size up to $315m
    • Pricing June 25
    • Morgan Stanley, Bank of America
  • DoubleDown Interactive
    • Nasdaq
    • Size up to $209m
    • Pricing June 30
    • JPMorgan, Bank of America
  • China Bohai Bank
    • Hong Kong exchange
    • Size about $2b
    • Pre-marketing from June 22
    • CCBI, Haitong, ABC International, CLSA
  • Ebang International
    • Nasdaq exchange
    • Size up to $126 million
    • Pricing on June 25
    • AMTD, Loop Capital Markets, Prime Number Capital
  • Smoore International Holdings
    • Hong Kong exchange
    • Size at least $800m
    • Pre-marketing from June 15
    • CLSA
  • Zhenro Services Group
    • Hong Kong exchange
    • Pre-marketing from June 15
    • CCB International, BNP Paribas
  • Shenzhen Hepalink Pharmaceutical Group
    • Hong Kong exchange
    • Pre-marketing from June 15
    • Goldman Sachs, Morgan Stanley
  • Greentown Management
    • Hong Kong exchange
    • Pre-marketing from June 19
    • Credit Suisse, Deutsche Bank
  • SK Biopharmaceuticals
    • Korea stock exchange
    • Size $793m
    • Listing around July 2
    • NH Investment & Securities, Citi, Morgan Stanley
  • Hygeia Healthcare Holdings Co.
    • Hong Kong exchange
    • Size $286m
    • Listing June 29
    • Morgan Stanley, Haitong
  • Kangji Medical Holdings Ltd.
    • Hong Kong exchange
    • Size $404m
    • Trading June 29
    • Goldman Sachs, Citic Securities, Bank of America

More ECM situations we are following:

  • GDS Holdings Ltd., a Chinese data center company traded on the Nasdaq, is considering selling shares in Hong Kong as early as this year, following in the steps of U.S.-listed Chinese firms like NetEase Inc. and JD.com Inc., according to people with knowledge of the matter
  • Zhen Ding Technology Holding Ltd. is seeking $400 million in convertible bonds due in 2025, according to terms of the deal seen by Bloomberg News
  • Undisclosed vendors sold 17.1 million shares in Alphamab Oncology to raise HK$292.5 million ($38 million)
  • Hygeia Healthcare’s Hong Kong IPO priced at HK$18.5 a share
  • Kangji Medical Holdings Ltd. has priced its Hong Kong initial public offering at HK$13.88 per share, at the top of a marketed range, according to terms of the deal obtained by Bloomberg

See also:

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