Hony-Backed Consun Pharmaceutical Group Plans $141M HK IPO

Guangzhou-based medicine producer Consun Pharmaceutical Group Limited plans to offer 250 million new shares at HK$3.63 to HK$4.36 per share to raise up to HK$1.09billion ($141 million) through an IPO on the Hong Kong Stock Exchange, according to a company prospectus.

The IPO is planned to price on December 13 and may debut on December 19.

Three funds managed by Greenwoods Asset Management Limited: Golden China Master Fund, Golden China Plus Master Fund and Greenwoods China Alpha Master Fund, will purchase US$226.5 million worth of shares in Consun as cornerstone investors.

Hony Capital invested US$30 million in Consun in 2008. Its 29.9% stake in Consun will be diluted to 22.4% after the IPO.

Consun is an integrated pharmaceutical company principally engaged in the research, manufacturing and sale of modern Chinese medicines.

Consun generated RMB228.4 million in revenues and RMB59.1 million net profit in the first half of 2013.

Bank of China International is the sole sponsor and underwriter of the IPO.