28th Jun 2019 16:38
(Alliance News) - China-focused drug developer and distributor Hutchison China Meditech PLC said Friday the pricing of a secondary offer of its Nasdaq-listed shares has been fixed at USD24.00 each.
Hutchison China Meditech, also known as Chi-Med, announced majority shareholder Hutchison Healthcare Holdings Ltd will sell 12.0 million American depository shares at a discounted USD24.00 each to Morgan Stanley & Co LLC, which is acting as underwriter.
Each ADS is worth five ordinary London-listed share, which were trading 20% lower at 365 pence in London on Friday. On an ADS basis, this implies a value of USD23.20 each.
Hutchison Healthcare will also grant Morgan Stanley an over-allotment option of 1.8 million shares.
Should the basic 12.0 million share offer only be completed, Hutchison Healthcare will hold a 51.2% stake in Chi-Med following the deal. If the over-allotment option is also exercised in full, this will see it left with a 49.8% stake.
Chi-Med emphasised Hutchison Healthcare will receive all the proceeds from the sale.
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