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Chinese pharma tech giant Wuxi Biologics plans to spin off international business in Hong Kong IPO
- Capital raised from the IPO of Wuxi XDC will go towards new manufacturing facilities in Singapore, expanding production capacity in China
- The announcement comes as a string of biotech companies file to list their shares in Hong Kong, partly thanks to listing reforms
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Wuxi Biologics, China’s largest biologic drugs services company, is planning to spin off its international business, Wuxi XDC, in an initial public offering in Hong Kong.
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Wuxi Biologics holds a 60 per cent controlling stake in Wuxi XDC, which will remain its subsidiary after the spin-off, according to a filing submitted to the stock exchange on Sunday. The company did not disclose the amount it hopes to raise.
Wuxi plans to expand its offering beyond so-called antibody-drug conjugates (ADCs) to “strengthen our in -house discovery and development capabilities and manufacturing capacity”, the filing said. ADCs are biopharmaceutical drugs designed as a targeted therapy for treating cancer.
Capital raised from the IPO will go towards building new manufacturing facilities in Singapore, expanding production capacity in China, strategic investments and acquisitions as well as working capital and other general corporate purposes, according to the exchange filing.
Wuxi XDC saw net profit increase 16.5 per cent in the first quarter of the year to 80.7 million yuan (US$11.16 million) compared to the same period last year.
Morgan Stanley, Goldman Sachs and JPMorgan have been named joint advisers for the IPO.
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