CSPC Innovation Pharma to boost biotech stake, pursue H-share listing

CSPC Innovation Pharmaceutical plans to acquire an additional 29% equity in its controlling subsidiary, CSPC Megapharm Biopharmaceutical Co., Ltd., for 1.1bn yuan in cash from CSPC NBP Pharmaceutical Co., Ltd. This will increase CSPC Innovation Pharmaceutical's ownership in CSPC Megapharm Biopharmaceutical from 51% to 80%. The acquisition is based on an appraisal value of 380.51m yuan for the subsidiary's total equity as of December 31, 2024.

Concurrently, CSPC Innovation Pharmaceutical intends to apply for a primary listing of its H-shares on the Main Board of the Hong Kong Stock Exchange. This initiative aims to establish an international capital operation platform, enhance global competitiveness, and advance the company's pharmaceutical business. The H-share offering will be for up to 10% of the company's total share capital post-listing, with an additional 15% over-allotment option.

The company's articles of association and several governance policies will be revised to reflect the H-share listing. Deloitte Touche Tohmatsu has been appointed as the audit firm for the H-share listing. Both the equity acquisition and the H-share listing plans await shareholder approval.