Week In Review: WuXi AppTec To Follow Shanghai IPO With $1 Billion+ Hong Kong IPO

WuXi AppTec (SHA: 603259) has filed for a Hong Kong IPO that is expected to raise at least $1 billion (see story). The company, China’s largest CRO/CMO, completed a $354 million IPO on the Shanghai Exchange just over four months ago. Since then, its shares have nearly quadrupled, giving the company a market valuation of $13.1 billion. This is in addition to the $13.4 billion valuation of WuXi Biologics (HK: 2269), which IPO’d in Hong Kong one year ago. Three years ago, the company was privatized by its Chairman, Ge Li, plus investors that included Ally Bridge Group and Hillhouse Capital.

Hillhouse Capital of Beijing closed its Hillhouse Fund IV with an oversubscribed $10.6 billion, a record for a private Asian fund (see story). Hillhouse is a prominent life science investor, though it is equally involved in consumer technology and services. A global investor, its investments retain a focus on Asia companies. Hillhouse was founded in 2005 by Lei Zhang, who worked in Yale’s endowment office while he was getting his master’s degree. After he left the office, the endowment granted him $20 million in seed funding.  

Changchun High & New Technology (SZ: 000661) formed a $200 million China biosimilar JV with Alvotech, an Icelandic biotech (see story).Changchun will fund the JV with $100 million while Alvotech will contribute $10 million plus six drug licenses valued at $90 million. The permits to use these products will last for five years. Alvotech, founded in 2013, is a sister company to Alvogen, a US generic pharma. Alvogen is majority owned by CVC Capital Partners, an EU-Asian PE firm, and Temasek, the sovereign wealth fund of Singapore.  

General Atlantic, a global growth equity firm, invested $150 million in Hong Kong Asia Medical Holding (see story). Asia Holding provides cardiovascular healthcare services and operates hospitals under the name Asia Heart. Currently, the company operates two hospitals in Wuhan and Xinjiang. It also co-manages four heart centers including a new one in Hong Kong and another recently acquired center in Japan. The company will also open a second branch in Wuhan in November. Founded in 1999, Asia Heart offers heart surgeries and other cardiovascular services.