CK Hutchison-controlled biopharmaceutical company Chi-Med applies to list in Hong Kong

Hutchison China Meditech, or Chi-Med, a biopharmaceutical company specialising in cancer and immunological drugs controlled by Hong Kong conglomerate CK Hutchison Holdings, has applied to list on the city’s stock exchange through a flotation comprising Hong Kong and global offerings.

CK Hutchison, which currently holds a majority 60.2 per cent stake, plans to reduce its shareholding to below 50 per cent, as this will allow the deconsolidation of Chi-Med numbers into its financial statements. Details of its share offering, including newly issued shares for its Hong Kong offer, were redacted in its application to the Hong Kong exchange.

Chi-Med is already listed on the AIM market of the London Stock Exchange and as American depository shares (ADS) on the Nasdaq Global Select Market. It plans to use part of the net proceeds from its Hong Kong listing for the late-stage clinical development of its global and China pipeline, and to advance its pipeline of clinical-stage drugs.

Simon To Chi Keung, its chairman, said there was “great benefit” in seeking a listing in Hong Kong to supplement the company’s AIM and Nasdaq listings. “We expect the listing to enhance liquidity for our shareholders and strengthen our access to capital with a view to ensuring that we can fully realise the considerable potential of our drug portfolio,” he said.

“The current pace of development of the biotech ecosystem in China is remarkable. It is being fuelled by the major unmet medical needs in China, systemic regulatory reforms that are accelerating new drug innovation and deepening market access,” To said. The company also manufactures, markets and distributes prescription drugs in hospitals across China.