China National Biotec's IPO approved

China’s environmental ministry approved pharmaceutical manufacturer China National Biotec Group’s (CNBG) plan to raise up to US$1.58 billion in a Hong Kong IPO, Reuters reported. CNBG, a subsidiary of state-owned Sinopharm Group, aims to raise US$1.3–1.58 billion in the offering, according to a prospectus posted online by the environment ministry. The IPO is still subject to China Securities Regulatory Commission approval. The IPO will be managed by China International Capital, Morgan Stanley (MS.N) and UBS (UBSN.VX), Thompson Reuters subsidiary IFR Markets previously reported. Sinopharm Holdings (1099.HKG), also a subsidiary of Sinopharm Group, raised US$1.3 billion in a 2009 IPO. A successful IPO by CNBG will help reinvigorate the slow listings market in Hong Kong, which in 2009 and 2010 had been a leading IPO destination.