Herbert Smith Freehills advises on the world’s largest pharmacuetical IPO in three years

Herbert Smith Freehills has advised UBS AG, Hong Kong Branch; Citigroup Global Markets Asia Limited; and CITIC Securities Corporate Finance (HK) Limited in relation to their role as the underwriters and joint sponsors of the Initial Public Offering (IPO) of Luye Pharma Group Ltd. (“Luye”) and its listing on the Hong Kong Stock Exchange. The IPO raised US$764 million, making it the world’s largest pharmaceutical company IPO in three years.

Luye focuses on developing, producing and distributing innovative pharmaceutical products in three of China’s largest and fastest growing therapeutic areas: oncology, cardiovascular system and alimentary tract and metabolism.

Luye listed on the Hong Kong Stock Exchange on 9 July 2014. The move represents its second run as a public company. Previously, Luye traded on the Singapore Exchange, but was taken private in 2012 by Chinese private equity funds CDH Capital, Citic Private Equity and New Horizon Capital, and Luye’s founders.

The Herbert Smith Freehills team was led by Hong Kong partners Gary Lock and Kevin Roy who were supported by associates Ruth Lau, Jackie Chen, Eugene Lau and George Wu.

Gary Lock said: “The Luye IPO was significantly oversubscribed and the company has since made a strong debut on the Stock Exchange. Herbert Smith Freehills is delighted to have acted for the underwriters on this successful and important transaction.”

Kevin Roy said: “The Luye IPO is another example of China’s increasingly resurgent IPO market. This growth in IPO activity across the wider Asia region looks set to continue and we look forward to assisting our clients to raise capital for the remainder of the year.”

Luye was advised by Ashurst.

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