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Founders hit bonanza as drug maker debuts
By Winny Wang |
May 7, 2010, Friday
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Print Edition
Print Edition
SHENZHEN Hepalink Pharmaceutical Co, which sold its initial public offering shares at a record 148 yuan (US$22) among Chinese mainland listed companies, rose 18.36 percent on its trading debut yesterday in Shenzhen, making its founders the mainland's richest.
The drug maker, in which Goldman Sachs Group Inc has a stake, closed at 175 yuan, the highest level on the mainland.
Based on the closing price yesterday its founding couple - Li Li and Li Tan - became the mainland's richest as their combined holdings of 72 percent after the IPO were worth about 50 billion yuan, according to market watchers.
Hepalink, the world's biggest maker of the blood-thinner heparin, planned to raise 5.9 billion yuan by issuing 40 million shares in the IPO to expand production capacity.
Analysts were mixed toward the new stock. Orient Securities Co projected a reasonable price range of between 127 yuan and 143 yuan each, while Guodu Securities Co estimated it to be between 61.2 yuan and 76.5 yuan.
But the jump in the share price has yielded a return on paper of more than 200 times for a unit of Goldman, which paid about 37 million yuan for 45 million Hepalink shares in 2007.
Hepalink was founded in 1998. Its net income jumped 99.5 percent in the first quarter of this year from a year earlier to 250 million yuan and revenue soared 124.9 percent to 811 million yuan.
Hepalink was one of four firms that started trading on the mainland yesterday, with all of them gaining despite a 4.11 percent slump in the benchmark Shanghai Composite Index.
The drug maker, in which Goldman Sachs Group Inc has a stake, closed at 175 yuan, the highest level on the mainland.
Based on the closing price yesterday its founding couple - Li Li and Li Tan - became the mainland's richest as their combined holdings of 72 percent after the IPO were worth about 50 billion yuan, according to market watchers.
Hepalink, the world's biggest maker of the blood-thinner heparin, planned to raise 5.9 billion yuan by issuing 40 million shares in the IPO to expand production capacity.
Analysts were mixed toward the new stock. Orient Securities Co projected a reasonable price range of between 127 yuan and 143 yuan each, while Guodu Securities Co estimated it to be between 61.2 yuan and 76.5 yuan.
But the jump in the share price has yielded a return on paper of more than 200 times for a unit of Goldman, which paid about 37 million yuan for 45 million Hepalink shares in 2007.
Hepalink was founded in 1998. Its net income jumped 99.5 percent in the first quarter of this year from a year earlier to 250 million yuan and revenue soared 124.9 percent to 811 million yuan.
Hepalink was one of four firms that started trading on the mainland yesterday, with all of them gaining despite a 4.11 percent slump in the benchmark Shanghai Composite Index.
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