Eye clinic is the cynosure in gray market

Business | Avery Chen and Bloomberg 15 Oct 2019

Shares of EuroEyes International Eye Clinic (1846) surged 73.33 percent to HK$13 in the gray market before its main board debut last night.

The German eye clinic group raised HK$526.7 million after pricing its initial public offering at HK$7.5, the midpoint of the indicative price range between HK$6.2 and HK$8.8. Its retail tranche was oversubscribed by 41.72 times.

EuroEyes opened its first clinic in Hamburg in 1993 and has since expanded to Germany, Denmark and mainland China.

It plans to use 40 percent of net proceeds to set up clinics in major mainland cities by 2020. Mainland China accounted for 26.2 percent of its first quarter revenue and is expected to become its biggest revenue driver, chief financial officer Markus Braun said.

Meanwhile, mainland infant formula maker China Feihe kicked off preparations for a Hong Kong IPO to raise up to US$1 billion (HK$7.8 billion), according to Reuters IFR. The Beijing-based company's net profit for the first half this year surged 60.41 percent over a year ago to 1.75 billion yuan (HK$1.94 billion).

JP Morgan, China Merchants Securities, and CCB International are sponsors of the deal.

Feihe and its rivals have been expanding overseas after Chinese consumers lost faith in domestic production following the melamine scandal more than a decade ago. Feihe invested C$300 million (HK$1.78 billion) in a production plant in Ontario in partnership with Canada Royal Milk in 2017, while Inner Mongolia Yili Industrial has invested in facilities in the U.S. and New Zealand.

In other news, CanSino Biologics (6185) is joining other Hong Kong-listed biotechnology companies in seeking to list on Shanghai's Star Board, six months after going public in Hong Kong.

The Chinese vaccine developer said yesterday it planned to issue up to 24.8 million A shares on the Nasdaq-style Star Market.

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