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» 23/07/2009 [Company watch]
China Aoxing Pharmaceutical Corp. Receives Renewal of GMP Certification for Capsule Dosage Form of Pharmaceutical Products
» 15/03/2010 [Industry news]
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» 26/10/2009 [Finance]
China Growth to Remain Fast in Fourth Quarter, Official Says
» 17/08/2009 [Industry news]
Chindex Posts Profit on Product Sales, Health Services
» 07/05/2010 [Industry news]
Hong Kong: Recall of all products manufactured by Quality Pharmaceutical Lab Ltd
COMPANY NEWS » Finance back to previous page show list
»28/06/2009 [Finance]
Sanjin Seeks $133 Million in First China IPO in 2009

Guilin Sanjin Pharmaceutical Co., biggest producer of herbal lozenges in China, plans to raise 910.8 million yuan ($133 million) in the nation’s first initial public offering since September.

 
The Guilin, southwestern China-based company will sell 46 million shares, or a 10.1 percent stake, at 19.80 yuan each, it said in a statement to the Shenzhen stock exchange late yesterday. Funds from the Sanjin IPO will exceed the 634.1 million yuan the company said it estimated would be raised in its offering as investors sought shares in the first new listing in nine months. China’s benchmark Shanghai Composite Index has gained 60 percent this year, making it the world’s third-best performing in the period. Some investors are welcoming IPOs to have new investment alternatives for their portfolios, said Yu Jun, Beijing-based chief strategist at Citic Securities Co. Sanjin, controlled by Chairman Zou Jiemin and his wife, packages traditional Chinese medicine in modern forms including pills, sprays and injection to make it more convenient to take. The company’s best-selling products include Watermelon Frost, a lozenge to sooth irritation of the mouth and throat. Sanjin, founded in 1967, also sells tablets to treat urinary tract and kidney inflammation, and capsules for stomachaches and ulcers. Profit Gains Net income rose 9.8 percent to 273.7 million yuan in 2008 from 249.2 million yuan a year earlier. The company plans to use proceeds from the IPO to add technology to its production lines for herbal medicines and to also build a storage and logistics center, it said. Profit may rise to 316 million yuan this year and 369 million yuan in 2010, according to estimates by Bohai Securities Co. analyst Ma Feifei. She estimates Sanjin’s shares will trade at 17.50 yuan to 21 yuan after its listing on Shenzhen’s exchange. The company’s initial offering price of 19.80 yuan exceeds Ma’s estimates of 15 yuan to 18 yuan per share. Sanjin being the first IPO since September is the main reason for why the offering price was set at this level, Ma said today by telephone: At this price, I don’t think there is a lot of room for gains once trading starts. Sanjin announced it had received final approval for its IPO on June 19. China Merchants Securities Co. is arranging Sanjin’s stock sale. Retail investors will be able to subscribe to the offering on June 29, the company said. Sanjin didn’t give a date for when its shares would start trading in Shenzhen. IPO Candidates Zhejiang Wanma Cable Co. said June 24 it won regulatory approval for a listing in Shenzhen. Other companies awaiting approval include Shenzhen Salubris Pharmaceuticals Co., people familiar with the matter said last week. Wanma and Salubris plan to raise less than 650 million yuan each, according to documents they filed with the regulator. The China Securities Regulatory Commission halted IPOs in September last year after the Shanghai Composite Index fell almost 60 percent in the first nine months of 2008.

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