Timing is right for a Hong Kong debut
Update | 30 May 2019
Approval of EGM resolutions paves the way for the IPO of Hutchison China MediTech (Chi-Med) on the Hong Kong Stock Exchange (SEHK) in the coming months. This IPO should enhance Chi-Med’s access to capital, broaden its shareholder base, further raise its profile in its home market, and, importantly, improve liquidity. Liquidity will be further boosted by an associated global offering (size and structure are not yet disclosed), the secondary placement of shares by majority shareholder CK Hutchison Holdings Ltd, and a share split effective May 30th. Each ordinary AIM share is being divided into 10 new shares; an adjustment to the ADS ratio ensures there is no effect on the NASDAQ trading price. Accounting for this share split, our valuation remains $35.57/ADS ($4.74bn) but is now £5.47/share (£3.65bn) vs £54.72/share previously.
|Year-end: December 31||2017||2018||2019E||2020E|
|Adj. PBT (US$m)||(53.5)||(86.7)||(205.6)||(202.0)|
|Net Income (US$m)||(23.0)||(71.3)||(170.6)||(164.4)|
|Earnings per ADS (US$)||(0.22)||(0.57)||(1.31)||(1.26)|
|Adj. EBITDA (US$m)||(17.2)||(69.7)||(163.9)||(159.5)|
30 May 2019
|Price (US ADS) (UK share)||$28.46|
|Shares in issue (ADS)|
Hutchison China MediTech is a Hong Kong headquartered biopharma with an established Commercial Platform in China, and a diverse pipeline of first-in-class/best-in-class selective oral tyrosine kinase inhibitors (Innovation Platform). Its pipeline, discovered in-house, is in development for the China and global oncology markets.
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Mick Cooper PhD
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