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Fosun shares stumble on HK debut
By Ding Yining |
October 31, 2012, Wednesday
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Print Edition
Print Edition
SHANGHAI Fosun Pharmaceutical (Group) Co fell below its offering price in its debut on the Hong Kong stock exchange yesterday due to weak market sentiment.
Shares of the Shanghai-based medical company closed down 8.3 percent at HK$10.82 (US$1.39) after raising HK$3.96 billion yuan (US$512 million) last week.
The stock tumbled as much as 12 percent in early trading and its Shanghai-listed shares dropped 0.97 percent to 10.22 yuan.
Fosun Pharmaceutical, a subsidiary of one of China's largest conglomerates Fosun International, said it plans to use about half of the net proceeds of HK$3.76 billion to fund domestic and overseas acquisitions to fuel growth.
The rest of the proceeds will be invested in research and development projects and to repay debt.
GF Securities, in a research note, said: "Some of the company's products will be subject to regulatory price limits but overall it will benefit from increasing spending on health care in China in coming years."
Last week, it set the offering price at the lower end of a price range between HK$11.8 and HK$13.68.
Fosun Pharmaceutical's listing was the biggest since July.
Shares of the Shanghai-based medical company closed down 8.3 percent at HK$10.82 (US$1.39) after raising HK$3.96 billion yuan (US$512 million) last week.
The stock tumbled as much as 12 percent in early trading and its Shanghai-listed shares dropped 0.97 percent to 10.22 yuan.
Fosun Pharmaceutical, a subsidiary of one of China's largest conglomerates Fosun International, said it plans to use about half of the net proceeds of HK$3.76 billion to fund domestic and overseas acquisitions to fuel growth.
The rest of the proceeds will be invested in research and development projects and to repay debt.
GF Securities, in a research note, said: "Some of the company's products will be subject to regulatory price limits but overall it will benefit from increasing spending on health care in China in coming years."
Last week, it set the offering price at the lower end of a price range between HK$11.8 and HK$13.68.
Fosun Pharmaceutical's listing was the biggest since July.
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