Chinese medical floats in Shenzhen, Hong Kong “could raise billions”

SHENZHEN - Two Chinese medical companies have filed for separate listings in Shenzhen and Hong Kong, in deals that could raise up to USS1.5 billion combined as the pair seeks to capitalise on a boom in demand for high-quality products and services.

Caixin reports that the larger of the deals would see Shenzhen Mindray Bio-Medical Electronic Co. Ltd., which de-listed from New York last year, raise up to RMB6.63 billion (US$975 million) through an offering in Shenzhen, according to a filing with the Chinese securities regulator last Friday.

The second would see WuXi Biologics (Cayman) Inc., one of China’s top biotech firms, raise up to HK$4 billion (US$514 million) through a listing in Hong Kong, according to a filing to the Hong Kong stock exchange on Wednesday.

Both offerings could get strong receptions from investors keen to buy into some leading private sector names in China’s medical sector, which is growing rapidly as Beijing builds up a national system of hospitals and clinics.

“The offerings are in an area, health and drugs, that the Government needs to develop, and I suspect they’ll both be warmly received if the valuations aren’t too crazy,” said Ryan Roberts, an analyst at MCM Partners.  www.webershandwick.cn (ATI).