Traditional Chinese medicine (TCM) manufacturers are gearing up to go public in Hong Kong, aiming to tap the market for international expansion.
TCM firms have joined the queue for initial public offerings (IPOs) in the city to test foreign investors’ appetite for their shares. The latest to join the queue are Sichuan Neautus Traditional Chinese Medicine and Hong Kong-based Herb Standard.
“Hong Kong will serve as our hub for capital, research and development, as well as international transactions settlement,” Jiang Feng, general manager of Sichuan Neautus, said at a forum hosted by the government investment promotion agency InvestHK on Thursday.
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Sichuan Neautus filed an application for an IPO in October. Foreign capital accounts for about 30 per cent of total funds raised from its investors, Jiang said. The firm operates in 10 overseas markets including Vietnam, Malaysia, South Korea, the United States and Germany.
The company, which provides decoction-ready products, is awaiting approval under its listing hearing.
Herb Standard planned to use IPO proceeds to expand its overseas production capacity, build an international sales network and develop artificial intelligence applications in its manufacturing processes, according to its prospectus.
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