October 15, 2012 / 5:11 AM / in 5 years

UPDATE 1-Fosun Pharma to launch up to $600 mln HK offer Tuesday-source

* Listing would be biggest in Hong Kong in 3 months

* To offer shares at $11.08-HK$13.68 each - source

* Deal set to be priced on Oct 22 or 23

HONG KONG, Oct 15 (Reuters) - Shanghai Fosun Pharmaceutical (Group) Co Ltd is set to launch an up to $600 million Hong Kong stock offering on Tuesday, a source with direct knowledge of the plans said, the biggest share sale in three months to hit the once-booming Asian equity capital market.

The deal was originally set to be launched last Thursday, the first major stock sale in Hong Kong after a drought of nearly three months in offerings. It would be the largest offering in Hong Kong since Shanghai-listed Inner Mongolia Yitai Coal Co Ltd raised about $900 million in early July.

Shanghai Fosun Pharmaceutical is set to price the offering on Oct. 22 or 23, said the source, who was not authorised to speak publicly on the matter.

Equity markets in Hong Kong, which led the world in issuance for two years in a row in 2009 and 2010, have dwindled with new stock offerings down by more than 80 percent so far this year.

The company is offering shares at an indicative range of HK$11.08 to HK$13.68 each, the source said. At the low end of the range, the price would be equivalent to 14.5 times Fosun Pharmaceutical’s estimated 2012 earnings and 12.1 times its 2013 earnings.

Shanghai Fosun Pharmaceutical is a subsidiary of Fosun International, one of China’s largest conglomerates. The company has secured $75 million in cornerstone investments from Prudential Financial and the World Bank’s private investment arm, International Finance Corp (IFC), Thomson Reuters publication IFR reported.

China International Capital Corp (CICC), Deutsche Bank , JPMorgan and UBS are handling the offering.

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