9 Feb 2010 10:59

Kelun Pharma to debut on Shenzhen Stock Exchange

Shanghai. February 9. INTERFAX-CHINA - The China Securities Regulatory Commission (CSRC) announced on Feb. 9 it has approved Sichuan Kelun Pharmaceutical Co. Ltd.'s application to launch an initial public offering (IPO).

According to the announcement, Kelun Pharma plans to raise RMB 1.49 billion ($218.16 million) through the issuance of 60 million shares on the Shenzhen Stock Exchange, estimated at RMB 24.85 ($3.64) per share.

The company aims to inject the funds raised into the construction of new production facilities and expansion of existing facilities.

In particular, production facilities at its Chengdu headquarters and seven subsidiaries located in Sichuan, Heilongjiang, Hunan, Hubei, Guangdong and Yunnan provinces will undergo expansion. New facilities producing infusion fluids will be built at its headquarters and four subsidiaries located in Liaoning, Hunan, Shandong and Heilongjiang provinces.

At present, Kelun Pharma has not yet announced the timetable for its IPO.

As China's largest infusion producer, Kelun Pharma mainly engages in the research and development (R & D), production and sale of Western medicines, infusion fluids and related products. In 2009, the company recorded net profit of RMB 434.17 million ($63.57 million), up 39 percent year-on-year.