Shanghai Pharmaceuticals plans US$400m share sale to fund production

[HONG KONG] Shanghai Pharmaceuticals Holding Co Ltd said on Friday it planned to sell HK$3.13 billion (S$528.7 million) worth of new shares to fund the development of its manufacturing and distribution businesses.

The Chinese company plans to sell 153.18 million new H-shares, or 5.39 per cent of its total enlarged share capital, to third-party investors, it said in a filing.

The new shares will be issued at HK$20.43 apiece, a 6.71 per cent discount from the previous close.

The stake of its controlling shareholder, Shanghai Industrial Investment (Holdings) Co Ltd, will be reduced to 33.61 per cent, from 35.52 per cent, it said.

Morgan Stanley & Co International, Haitong International Securities Co Ltd and China Merchants Securities (HK) Co Ltd are the placing agents.

REUTERS