Less than five months after its IPO in Shanghai, WuXi AppTec Co. Ltd. (Shanghai:603259) proposed Tuesday to list on the Hong Kong stock exchange in an offering underwritten by Morgan Stanley Asia, Huatai Financial Holdings (Hong Kong) and Goldman Sachs (Asia).
WuXi announced in July its plan to list in Hong Kong, noting that the offering would account for 10-15% of its total share capital.
The R&D services and manufacturing company raised RMB2.3 billion ($354 million) in Shanghai in May.
WuXi has benefited from a growing China market and new policies that encourage small molecule drug development in recent years, according to a company filing with the exchange. It reported RMB7.8 billion ($1.1 billion) in total 2017 revenues, making it the largest R&D services platform in Asia.
WuXi’s co-founders — Chairman and CEO Ge Li along with VPs Ning Zhao, Xiaozhong Liu and Zhaohui Zhang — combined hold about 31% of the company’s shares. All four are also executive directors.
WuXi has invested in 44 companies as of June 30, including Shanghai diabetes company Hua Medicine Ltd. (HKSE:2552), which Li co-founded in 2011 with Hua CEO, CSO and Executive Director Li Chen, Arch Venture Partners’ Robert Nelsen and others.
Hua’s IPO in Hong Kong last week made it the second biotech to go public and the first prerevenue biotech to list in Hong Kong since Hong Kong Exchanges and Clearing Ltd. (HKEX) created a new prerevenue chapter on the exchange.
WuXi gained RMB3.25 to RMB85.75 Tuesday.