Jacobson Pharma Corporation Limited Announces Details of the Proposed Listing on the Main Board of SEHK

Sep 12, 2016 09:46 JST

Source: Jacobson Pharma Corporation Limited

HONG KONG, Sep 12, 2016 - (ACN Newswire) - Jacobson Pharma Corporation Limited ("Jacobson Pharma" or the "Group"), a leading company engaged in the research, development, production, marketing and sales of and a vertically integrated manufacturer of Generic Drugs ("generics") and Proprietary Chinese Medicines ("PCM") and the largest generic drug company in Hong Kong, has commenced the Hong Kong Public Offering on 8 September 2016 (Thursday), and will end at 12:00 noon on 13 September 2016 (Tuesday). The final Offer Price and the results of the allocation are expected to announce on 20 September 2016 (Tuesday). Dealing of the Shares is expected to commence on the Main Board of SEHK on 21 September 2016 (Wednesday) under the stock code 2633. The shares are to be traded in board lots of 2,000 shares.

From left to right: Jacobson Pharma Corporation Limited, Mr. Raymond Yim, Executive Director; Jacobson Pharma Corporation Limited, Mr. Derek Sum, Chairman, Executive Director and Chief Executive Officer; BOCI Asia Limited, Mr. Daniel Ng, Head of Investment Banking Division; Jacobson Pharma Corporation Limited, Mr. Victor Lau, Group Financial Controller

Highlights
- The largest generic drug company in Hong Kong, having over 30% share of the total generic drug market for each year since 2012
- Highly recognized and widely carried Proprietary Chinese Medicines, namely Po Chai Pills, Flying Eagle Woodlok Oil and Tong Tai Chung Woodlok Oil
- Po Chai Pills (called Puji Pills in China) was reclassified into the over-the-counter ("OTC") category by the China Food and Drug Administration in May 2016
- Nine production facilities for generic drugs. Eight of these facilities are located in Hong Kong and are PIC/S-accredited, and one is located in China and is GMP-accredited
- Leverage its PIC/S accreditations to deliver generic drugs in markets such as Singapore, Malaysia, Australia, New Zealand and Japan

The Group intends to issue a total of 437,500,000 shares globally (subject to the exercise of the Over-allotment option), of which approximately 90% are for the International Offer. The remaining approximately 10% are for the Hong Kong Public Offer. The indicative offer price range is between HK$1.28 and HK$1.72. Net proceeds from the global offering are estimated to be approximately HK$508.4 million to HK$692.8 million.

Within the International Placing, cornerstone investors New Heritage Healthcare Limited and Hong Kong Wing Wah Medicine Group Limited have agreed to subscribe for, at the Offer Price which are equivalent to HK$50 million and HK$80 million respectively.

BOCI Asia Limited is the Sole Sponsor, Sole Global Coordinator, Sole Bookrunner and Sole Lead Manager of the listing.

Growth Strategies

Jacobson Pharma intends to leverage its comprehensive product portfolio to penetrate new markets. In China, the Group will expand its generic drug and proprietary Chinese medicine portfolio and build strategic alliances with local distributors to maximize market penetration in targeted provinces with high growth potential, including Guangdong, Yunnan, Zhejiang and Fujian provinces.

In May 2016, the China Food and Drug Administration reclassified its Puji Pills into the OTC category. The Group also aims to leverage its pre-qualifications to deliver pharmaceutical products with direct regulatory approval in markets like Macau and to leverage its PIC/S accreditations to deliver generic drugs in markets such as Singapore, Malaysia, Australia, New Zealand and Japan.

The Group will continue to acquire products, technologies and businesses that have strategic fit with its existing products and businesses. The Group intends to consolidate and streamline its production facilities and rationalize operational expenses. The Group also aims to enhance and leverage its large, cost-effective operation to continue to increase economies of scale and pricing advantage, as well as further improving distribution and logistics capabilities through vertical integration.

Use of Proceeds

Assuming an Offer Price of HK$1.50 per share (being the mid-point of the indicative Offer Price range), the estimated net proceeds of the global offering is HK$600.6 million intended for the following uses:

Item / Percentage

Acquisitions - 45.0%
Capital investments in relation to acquiring, expanding, streamlining or upgrading manufacturing plants, premises, facilities or capabilities - 18.0%
Pursuing bioequivalence clinical studies for specialized generic drugs and further elevating our product development and research capabilities - 15.0%
Bolstering sales, marketing and advertising efforts for the next five year - 12.0%
Working capital and other general corporate purposes - 10.0%

Contact:

Strategic Financial Relations Limited
Vicky Lee       Tel: (852) 2864 4834  Email: vicky.lee@sprg.com.hk
Angela Ng       Tel: (852) 2864 4855  Email: angela.ng@sprg.com.hk
Stephanie Liu   Tel: (852) 2864 4852  Email: stephanie.liu@sprg.com.hk
Fax: (852) 2527 1196

Source: Jacobson Pharma Corporation Limited
Sectors: Daily Finance, Daily News