HONG KONG, Sept 4 (Reuters) - 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 on Friday.
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.
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. (US$1=HK$7.75) (Reporting by Alison Lui, Donny Kwok and Michael Flaherty; editing by Jacqueline Wong)