Shanghai Pharma to launch $2.2bn Hong Kong offering

Shanghai Pharmaceuticals Holding Co, China’s second-largest drug distributor, plans to raise up to US$2.2 billion in a Hong Kong offering to fund acquisitions, Bloomberg reported. Singapore state investment company Temasek Holdings Pte plans to buy US$300 million of the shares, while banking and financial services company Guoco Group (0053.HK) will invest US$150 million, and Pfizer (PFE.NYSE) and Bank of China Group Investment will each buy US$50 million of the shares, according to a marketing document sent to investors. Shares have been priced at HK$21.80-26 apiece, the document said. Shanghai Pharmaceuticals signed a memo of understanding with Pfizer in April to pursue potential business opportunities in China. State media reported last week that China may soon release a plan to consolidate the drug market, increasing the market share for the nation’s three biggest drug companies to 30-35% by 2015 from 21% in 2009.