Week In Review: Jiangsu Hansoh To Raise Up To $3 Billion In Hong Kong IPO

Hansoh, a China pharma based in Lianyungang, Jiangsu province, has applied to stage an IPO on the Hong Kong exchange (see story). Unlike most companies seeking Hong Kong IPOs, Hansoh is both profitable and established. It claims to be one of the top 30 biopharmas in China, with revenues of $900 million in 2017. Two years ago, when rumors of a Hong Kong IPO first surfaced, it was thought Hansoh’s debut would raise between $1.5 and $3 billion. No estimates for this IPO have are publicly available.

Quan Capital, a Shanghai healthcare investor, filed to raise $300 million for its second fund (see story). In August 2017, the firm closed its first fund with $150 million. Globally, Quan seeks investments in biopharmas with potentially breakthrough products, while in China it targets companies with innovative services for China’s drug development sector. The company has very close ties to Shanghai’s Zai Lab (Nasdaq: ZLAB): Quan is headed by Dr. Samantha Du, founder and CEO of Zai, and Dr. Marietta Wu is a Managing Director at Quan and also a Founder of Zai.  

Zai Lab completed a $150 million secondary offering of NASDAQ-listed shares, selling 7.5 million ADS at $20 each (see story). All together, Zai is developing eight drug projects, six of them in clinical trials. The company is reported to have a $300 million Hong Kong IPO in the works, and on Tuesday, Quan Capital, which shares its top management with Zai, though the two companies are organizationally separate, filed to raise $300 million for its second healthcare VC fund. Zai’s stock has dropped 23% since the secondary was first announced last week.  

Guangdong Jianke Pharmaceutical raised $130 million in a funding round for its online pharmacy and medical advisory operations (see story). The company, which claims to be  largest B2C pharmacy in China, has over 100 million customers, plus physical and internet hospitals. It is estimated to have a value of $500-$600 million and expects to IPO in the US sometime in 2019, after it completes one additional financing. The current round was led by GTJA, a Shenzhen healthcare investor.