Beijing Tong Ren Tang Chinese Medicine Co., Ltd., a Hong Kong-based company jointly established by Beijing Tongrentang Co., Ltd. (SHSE: 600085) and Tong Ren Tang Technologies Co., Ltd. (SEHK: 1666), issued a prospectus a few days ago to get listed independently on ChiNext in Hong Kong on May 7.
The Hong Kong subsidiary plans to issue 200 million shares, of which 100 million shares will be offered for qualified shareholders of Tong Ren Tang Technologies as a priority, and the remaining 100 million shares will be placed. The company also has a right to issue 30 million additional shares. The price has been affirmed as HKD 3.04 per share.
According to the prospectus, the qualified shareholders can apply for privileged subscription, which accounts for 50% of the total offered shares. After the issue, Beijing Tongrentang and Tong Ren Tang Technologies will respectively take a 35.18% and 39.82% stake in the Hong Kong subsidiary.
The money raised from the IPO is planned to used to expand the retail and distribution network, establish a traditional Chinese medical center in Hong Kong, acquire and merge companies, enlarge production capacity, registered products, etc.
