Feb. 9, 2006 (China Knowledge) – Star Pharmaceutical's initial public offering (IPO) for a listing on the main board of Singapore Exchange (SGX) opens today, after its official launch yesterday, according to The Business Times (BT), Singapore.
China's Star Pharmaceutical is a drug company based in Haikou, Hainan.
The offer comprises 58.5 million shares, inclusive of 2.9 million offer shares and 55.6 million placement shares, priced at S$0.35 each. The total offer, representing 25% of Star's enlarged share capital, comprises 46.8 million new shares and 11.7 million vendor shares.
Pegged at a PE (price earning) ratio of 8.1 based on pre-invitation share capital of 187.3 million shares and net earnings of $0.043 per share for Star's financial year of 2004, net tangible assets per share after adjusting for IPO proceeds will be $0.116.
Star hopes to raise net proceeds of S$14.2 million for R&D to improve manufacturing capacity and production facilities.
Star produces Western drugs, as well as traditional Chinese medicine, to be sold to hospitals, clinics and pharmacies though a network of 240 distributors supported by 20 liaison offices in China's major cities and provinces.
