Hengrui Pharmaceuticals is said to weigh second listing in Hong Kong

JIANGSU Hengrui Pharmaceuticals is considering a second listing in Hong Kong that could happen as soon as next year, according to people familiar with the situation.

The company is in talks with advisers about the potential share sale, which might raise at least US$2 billion, the people said, asking not to be identified as the information is private.

Hengrui’s Shanghai-traded shares have risen 12 per cent this year, boosted by a rally at the end of September, giving the company a market value of US$45.4 billion.

Deliberations are ongoing and the size of the fundraising will depend on market conditions, the people said. Hengrui didn’t respond to a request for comment.

A listing by Hengrui would add to the momentum of share sale activity in Hong Kong, propelled by Midea Group raising US$4.6 billion in an offering. Midea’s shares have climbed more than 40 per cent in Hong Kong since last month’s listing.

Companies that trade in mainland China have been looking at second listings in Hong Kong, partly to help offset challenges on the domestic front, where it can be difficult to carry out placements to raise fresh funds and offload shares.

Foshan Haitian Flavouring & Food, one of China’s biggest condiment makers, is among those planning share sales in Hong Kong, Bloomberg News reported.

Founded in 1970 as a state-owned company, Hengrui went public in Shanghai in 2000, according to its website. It has about 20,000 employees with 14 research and development centres globally. As of the end of June, it had 585 patents granted in China and 705 worldwide, including in the US, Europe and Japan. BLOOMBERG