Herbert Smith Freehills and MoFo complete standout HK IPO for Fosun

Herbert Smith Freehills (HSF) and Morrison & Foerster (MoFo) have advised on the IPO of Shanghai-based Fosun Pharmaceutical Group on the Hong Kong Stock Exchange, a deal that raised HK$3.97bn (£318m).

MoFo teamed up with Shanghai-based PRC firm Chen & Co to advise the issuer. The US firm’s team was led by Hong Kong corporate and capital markets partners Gregory Wang, Ven Tan and John Moore, while Chen & Co’s team was headed by corporate and capital markets partner John Jiang.

HSF, fielding Hong Kong corporate partner Gary Lock and capital markers partner Kevin Roy, acted for the underwriters, UBS , China International Capital Corporation, JPMorgan, Deutsche Bank, Agricultural Bank of China International and Haitong International.

Chinese firm Grandall advised the underwriters on PRC law out of Shanghai, fielding corporate and capital markets partner Ni Junji, .

The deal is one of the few major new listings in Hong Kong since July this year and is the among the very largest IPOs in Hong Kong so far in 2012.

According to its prospectus, Fosun Pharma intends to use part of the IPO proceeds for acquisitions of pharmaceutical companies both in China and overseas.

Background to this deal:

Headquartered in Shanghai, Fosun Pharma is a leading healthcare company in the PRC. The company has been listed on the Shanghai Stock Exchange since 1998. Both Chen & Co and Grandall have previously worked with Fosun Pharma on its corporate financing transactions.

Fosun Pharma is a subsidiary of Chinese conglomerate Fosun International. Fosun International listed in Hong Kong in 2007 through a $300m IPO. Herbert Smith and Chen & Co advised the issuer on the 2007 IPO, while the underwriters instructed Sidley Austin and Grandall.

In 2011, capital markets partner John Moore joined MoFo from Herbert Smith. Moore was one of the lead partners in Herbert Smith’s team on the 2007 Fosun International IPO.