HUTCHMED (China) Ltd. (HCM) stock prices were up down by a minor 0.81% as of the market closing on June 29th, 2021, bringing the price per share down to USD$33.23 at the end of the trading day. Subsequent pre-market fluctuations saw the stock surge by 14.35%, bringing it up to USD$38.00.
Hong Kong Listing
The company had a massively successful first day of trading in Honk Kong, having been listed after a delayed previous attempt earlier in 2019. The earlier plan to list was shelved amid market uncertainties at the time. The biopharmaceutical company’s shares that were already trading on in the U.S and U.K jumped a massive 51%, with the company raising USD$537 million in their offering.
Global Offering
June 23rd2021 saw the company announce the pricing of its global offering which comprises an international offering and a Hong Kong public offering in connection with a primary listing of its ordinary shares on the Stick Exchange of Hong Kong Ltd.’s Main Board. The offering will see the sale of up to 104 million new ordinary shares of HCM.
Pricing of Global Offering
Both the International Offering and the Hong Kong Public Offering final offer price has been set at roughly USD$25.82 per American depositary share (ADS), with each ADS representing 5 ordinary shares of the company. The offer price was determined by the closing price of the company’s ADSs on the Nasdaq Global Select Market and shares on the AIM market of the London Stock Exchange on June 22nd, 2021. Shares are expected to begin trading on June 30th, 2021, pending approval from the SEHK.
Offering Details
The offering is expected to generate USD$0.54 billion in gross proceeds, before the deduction of expenses related to the offering. The agreement also comes equipped with an option for international underwriters to buy up to 15.6 million new issued Shares at the offer price, in case of over-allotments. This option is available for 30 days after the last day of lodging applications under the Hong Kong Public Offering.
Allocation of Resources
Net proceeds generated from the global offering are forecasted to be allocated towards the advancement of the company slate-stage clinical programs, as well as its pipeline of clinical-stage and preclinical stage candidates. This move serves to consolidate the company’s commercialization, clinical, regulatory, and manufacturing capability, as well as fund future opportunities and acquisitions.
Future Outlook for HCM
Armed with a solid liquidity position, HACM is poised to capitalize the added resources generated from its global offering. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.
