Luye has the right medicine with $764m IPO

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By Rashmi Kumar
26 Jun 2014

Luye Pharma Group opened books for its HK$5.9bn ($764m) Hong Kong IPO on June 23 as the leads look to take advantage of the company’s strong credentials in the healthcare sector.

The company is offering approximately 1bn shares at a price range of HK$5.38-HK$5.92, which works out to a 2014 P/E multiple of 24.2-26.6 times. That is in line with closest comparables CSPC Pharmaceutical, Sihuan Pharmaceutical Holdings Group and Sino Biopharmaceutical, which all trade within 24.5-26.9 times.

“Luye is the ...

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