China Resources Pharmaceutical Group Ltd. (“CR Pharmaceutical”, stock code: 3320) had its H shares listed on the main board of the Hong Kong Stock Exchange, with King & Wood Mallesons (KWM) advising its underwriters. CR Pharmaceutical issued a total of 1.543 billion shares globally on an offer price of HK$9.10 per share, and raised a net amount of approximately HK$13.671 billion, making it the largest IPO conducted by non-financial enterprises in Hong Kong’s capital market in 2016. If over-allotment option is fully exercised, this transaction will be the largest-ever IPO by pharmaceutical enterprises in China and the sixth in pharmaceutical industry globally.

CR Pharmaceutical is a leading comprehensive pharmaceutical group in China, engaging in the research and development, manufacture, distribution and retail of a broad range of pharmaceutical and healthcare products. In this offering, shares of a total value of US$916 million  were subscribed by 8 cornerstones investors, including Hengjian International, China Life, Fujifilm Corporation, Nordea Investment, London International Trading, China Chengtong, Anbang Investment and High Action, and  International offering totals 1,465 million shares. CR Pharmaceutical plans to invest the fund raised in this IPO in conducting strategic acquisition, building advanced logistics center, establishing R&D platform, improving and upgrading the group’s IT systems, etc.

KWM acted as the PRC legal counsel for the underwriters in the transaction, providing legal solutions and advice to CR Pharmaceutical and its underwriters on all aspects of the listing. The project was led by partners Tang Lizi and Han Jie.

Tang Lizi commented, “We are pleased to have advised on CR Pharmaceutical’s milestone transaction. With a wealth of experience and strengths in securities and capital markets combined with our extensive experience in the pharmaceutical industry, we were able to provide clients not only with first-class service, but also valuable and practical legal solutions and advice, and gained the client’s high appraisal.”