HONG KONG, Sept 4 China's largest pharmaceutical
products distributor, Sinopharm Group Co Ltd, is set to raise up
to HK$8.73 billion ($1.13 billion) in an initial public offering
of shares in Hong Kong, according to a term sheet seen by Reuters
Sinopharm is selling 545.68 million H-shares at a price
ranging from HK$12.25 to HK$16 apiece with an over-allotment
option to issue additional shares representing 15 percent of the
offering, the term sheet showed.
The price range translates into a valuation of 19.5 to 25.5
times the company's projected 2010 earnings, based on the
syndicate consensus, a source close to the deal said.
Some 90 percent of the shares are for international placement
with the remainder for public subscription. The company will kick
off a roadshow on Friday and the shares will be priced on Sept.
15 and trading is expected to begin on Sept. 23.
UBS AG UBSN.VX, CICC and Morgan Stanley (MS.N) are joint
bookrunners of the deal. Citigroup (C.N) and Deutsche Bank
(DBKGn.DE) are the joint leads.
According to a source close to the matter, there are nine
cornerstone investors, seven of which plan to invest $25 million
each. The seven are: Singapore's GIC, China Life (2628.HK), Bank
of China's (3988.HK) BOCI, China Construction Bank's (0939.HK)
CCB International, global hedge fund Och-Ziff, investment fund
Martin Currie, and Value Partners (0806.HK).
Bank of East Asia's (0023.HK) chairman David Li and China
Chengtong's (0217.HK) parent company plan to invest $10 million
each, the source said.
(Reporting by Alison Lui, Donny Kwok and Michael Flaherty;
editing by Jacqueline Wong)