PE-Backed Luye Pharma Plans $750M HK IPO

Yantai, Shandong Province-based Chinese drug-maker Luye Pharma Group, which is backed by Chinese private equity firms, is planning an IPO in Hong Kong during the first half of this year, according to media reports.

Luye Pharma is aiming to raise around US$750 million in the planned Hong Kong IPO.

In March 2012, CDH Investments, CITIC Private Equity and New Horizon Capital acquired a majority stake of Luye Pharma for an undisclosed amount from Asian private equity firm MBK Partners in a secondary transaction.

The three private equity firms, together with Luye Pharma’s founders, took the company private in August 2012 through a management buyout.

The management team and the three private equity firms owned 92.63% of the company before the buyout. Luye Pharma was then delisted from the Singapore stock exchange after the privatization deal.

Luye Pharma listed on the Singapore stock exchange’s main board in 2004 under the name of "Asia Pharm".

In the past few years, private equity firms have taken dozens of Chinese companies private, hoping to re-list them elsewhere for better valuations.

Founded in 1994, Luye Pharma manufactures medical products for oncology, cardiovascular, orthopedic, gastroenterology and central-nervous-system diseases.

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