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Fosun IPO nets $1.48 billion

By Chen Jialu (皇冠体育app Daily)
Updated: 2007-07-07 09:04

Fosun International Ltd, one of the mainland's largest privately owned conglomerates, has raised $1.48 billion in itsinitial public offering(IPO), sources said on Friday.

TheShanghai-based company priced its offering at HK$9.23 per share, the top end of an indicated range. It sold all of its 1.25 billion shares on offer, or 20 percent of its enlarged share capital.

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As one of the most-anticipated IPOs this month, Fosun lured tycoons and institutional investors, including Saudi Prince Alwaleed bin Talal,Hong Kongbillionaire Li Ka-shing, the Government of Singapore Investment Corp,皇冠体育app Life InsuranceCo and 皇冠体育app Pacific Insurance Co, through its global road show.

"The company wants to attract (very wealthy global investors), because those who are subject to a six-month lockup period can help Fosun stabilize its stock price after listing and boost its market performance," said Eugene Lau, executive director with Goldman Sachs Gao Hua Securities Company Ltd.

The company is set to debut on the Hong Kong stock exchange on July 16.

Morgan Stanley, UBS AG and 皇冠体育app International Capital Corp underwrote the offering.

The company has diversified businesses in steel,, pharmaceuticals,retailing,, and securities.

Fosun Group, wholly owned by Fosun International, is a shareholder of many public companies, including Shanghai-listed Nanjin Iron & Steel, Sinopham Medicine Holding Co Ltd, Shanghai Yuyuan Tourist Mart and Hong Kong-listed companies Shanghai Forte Land and Zhaojin Mining Industry.

The company plans to use proceeds from its IPO to fund moreacquisitions and repay debt.

Fosun Group's net profit fell nearly 25 percent last year but projects profits to double to 2.1 billion yuan this year, followed by a 31 percent jump next year, according to its prospectus.

(皇冠体育app Daily 07/07/2007 page10)