HONG KONG Aug 18 China National Pharmaceutical
Group (Sinopharm) aims to spin off its medicine-making and
distribution businesses, raising up to $750 million in an initial
public offering of shares in Hong Kong as early as the fourth
quarter, a Hong Kong newspaper reported on Monday.
The South China Morning Post cited market sources as saying
Sinopharm planned to spin off the businesses held by subsidiary
Sinopharm Medicine Holding, which owns controlling stakes in drug
distributors China National Medicines (600511.SS) and Shenzhen
Accord Pharmaceutical (000028.SZ).
UBS and China International Corp have been hired to arrange
the sale, which is still awaiting the approval of the mainland
securities watchdog China Securities Regulatory Commission, the
paper added. It gave no further listing details.
Citic Pharmaceutical, which makes and distributes western and
traditional Chinese medicines, is considering a share sale worth
US$200 million in New York that could come next year, the paper
said. It gave no further details.
Market observers see a drugmaker as having a better chance of
success in a weak IPO market as it would be less sensitive to
wider economic conditions, the paper added.
(Reporting by Donny Kwok; editing by Jonathan Hopfner)