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Henlius Biotech expects to raise up to $477m from Hong Kong IPO

Cornerstone investors have agreed to invest about $140 million

HONG KONG (Nikkei Markets) -- Shanghai Henlius Biotech expects to raise up to HK$3.74 billion ($477 million) from an initial public offering in Hong Kong, according to sources.

The Chinese biopharmaceutical company, being spun off from Hong Kong-and-Shanghai-listed Shanghai Fosun Pharmaceutical Group, is offering 64.7 million shares in an indicative pricing range of HK$49.60 to HK$57.80 apiece, according to two persons familiar with the matter.

Four cornerstone investors Qatar Investment Authority, Shenzhen Putai Investment Development, Cayman Henlius and Staidson Biopharmaceutical have agreed to invest about $140 million in the IPO, the sources said.

Shanghai Henlius reported a loss of 158.1 million yuan ($22.2 million) for the three months ended Mar. 31, more than doubling from the year-ago period's loss of 67.8 million yuan. It reported revenue of 924,000 yuan for the quarter.

The company plans to use proceeds from the offering for ongoing clinical trials, regulatory filings and registration related to its core products, bio-innovative drugs and immune-oncology combination therapy, research and development and general corporate purposes.

Trading in the company's shares is expected to start on Sep. 25. UBS is the financial adviser for the offering, while China International Capital Corp., Merrill Lynch Far East, CMB International Capital, Fosun Hani Securities and Citigroup Global Markets Asia are the joint sponsors.

Shares of Fosun Pharma, a unit of Chinese conglomerate Fosun International, were down 2.4% at HK$22.80 as of 9:59 a.m. in Hong Kong.

-- Benny Kung

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