China-based Guangzhou Baiyunshan Pharmaceutical Co., Ltd (SHA: 600332) has announced the suspension of the spinning-off of its subsidiary Guangzhou Pharmaceutical Co., Ltd. This decision comes after considering the reply expiration date from the China Securities Regulatory Commission (CSRC) and changes in the Hong Kong capital market.
Regulatory Timeline
Guangzhou Pharma first made a regulatory filing to hold an initial public offering (IPO) to the Hong Kong Stock Exchange (HKSE) on March 17, 2021, which was accepted for review by the CSRC. The firm filed an IPO prospectus with the HKSE the same month. A written reply to the regulatory filing was issued by the CSRC on July 2, 2021. Given the reply expiration date of June 23, 2022, and the evolving capital market conditions in Hong Kong, Baiyunshan decided to suspend the IPO process.
Future Considerations
While the IPO has been suspended, Baiyunshan does not rule out the possibility of reconsidering the proposed spin-off at an appropriate time in the future.
Company Profile
Guangzhou Pharma, a leading pharmaceutical distributor in China, boasts a distribution network covering 31 provinces in the country. The company reported revenue of RMB 4.35 billion (USD 649.5 million) and net profits of RMB 424 million (USD 63.3 million) in 2020.-Fineline Info & Tech
