GIC, BlackRock cornerstone CITIC PE-backed 3SBio's IPO

As reported by Bloomberg, 3SBio is looking to raise up to HK$5.5 billion ($712 million) through the sale of 484.9 million new shares and 121.2 million shares held by CITIC. The shares will be priced at HK$8.30-9.10 apiece.

3SBio will use the majority of the proceeds from the offering to expand its portfolio through selective acquisitions, according to its prospectus. The company will also use the proceeds to strengthen its sales and marketing efforts, build new production lines, and fund research and development projects.

3SBio develops a range of pharmaceutical products for the China market, with a particular focus on the treatment of bleeding disorders. Its revenue has grown from RMB656 million ($105 million) for the year ended December 2012 to RMB1.13 billion in 2014. Net profit increased from RMB102 million to RMB292 million over the same period.

The company listed on the NASDAQ in 2007 but was taken private by CITIC in 2013, with management citing low liquidity and the opportunity for greater flexibility as a private company. Based on the projected pricing for the IPO, the company will be worth up to $2.85 billion, compared to $370 million at the time of its delisting.

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• Topics
• Greater China
• Healthcare
• Exits
• Buyout
• China
• Hong Kong (China)
• IPO
• Exit
• Citic Private Equity
• GIC Private
• BlackRock