Shanghai Fosun Pharmaceutical, the drugmaking unit of Fosun International (0656), is set to start on a US$500 million (HK$3.9 billion) initial public offering before the end of the month.
But it has chopped its target by as much as 37.5 percent from US$800 million due to worsening market conditions, dealReporter said yesterday.
"A US$500 million deal is the smallest the company would accept," said a source working on the transaction. "It will try for US$600 million if it can."
The Shanghai-based drugmaker proposed its H-share IPO in February last year. It received mainland regulatory approval in April to issue as much as 547 million shares in Hong Kong.
Two sources told dealReporter that pre-marketing is likely to start on September 17 and a formal roadshow a week later. Trading is likely to commence in the middle of October.
It will be the first IPO in Hong Kong since Dynam Japan's listing debut on August 6.
International Finance Corp and German drugmaker Bayer Healthcare have reportedly shown firm interest and look likely to become cornerstone investors on the issue.
Shanghai Fosun Pharmaceutical's A shares have performed well this year, gaining 34 percent since January.
It closed at 11.06 yuan (HK$13.50) yesterday, representing a price-to- earnings ratio of 21 times. STAFF REPORTER