China's Jiangsu Hansoh plans $3B IPO to tap investor demand

As China tries to reform its healthcare system, companies are rushing in to tap the capital markets to expand their reach. The latest one to hit the market will be Jiangsu Hansoh Pharmaceutical, which plans to sell up to $3 billion in shares on the Hong Kong market, which, if successful, would be the largest healthcare IPO to hit the Hang Seng Index, according to data from Dealogic, cited in a Wall Street Journal report.

The company, which was created in 1995, focuses on drugs for oncology, antibiotics, psychotropic and cardiovascular fields, according to the Wall Street Journal, and the IPO could be filed with regulators by March with a listing in July.

China is considered an attractive market for healthcare companies because there is ample room to grow as its people age and begin to spend more on drugs. The WSJ report cited a McKinsey survey that showed spending on pharmaceuticals rose by almost 14% to over $100 billion in 2014.

Jiangsu is not the only IPO planned for Chinese companies, according to the WSJ report. Xiuzheng Pharmaceutical Group, a drugmaker in northeastern China, is seeking to raise around $1 billion this year.

Another company, 3SBio, raised $710 million last year after it delisted from Nasdaq.

- here's the report from the WSJ (sub. req.)

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