by winston » Wed Oct 07, 2015 4:49 am
China: Nobel win just the tonic for medical stocks
Real Nutriceutical Group (2010) shares slid as much as 12.2 percent after proposing a rights issue at a 31.3 percent discount.
Shares of the mainland medicine and nutritional supplements maker ended at HK$1.17 yesterday, down 10.7 percent.
But most medical sector stocks rose after Tu Youyou became the first Chinese woman to a win Nobel Prize in science.
Tu won the Nobel Prize for Medicine, due to her contribution in artemisinin, a drug that is based on ancient Chinese herbal medicine and has saved millions of lives.
Shanghai Fosun Pharmaceutical (2196) ended 5.2 percent higher at HK$25.45, as it owns 95.2 percent stake of a Guangxi- based unit that got a license for artesunate, an artemisinin-related drug in 2010.
Guangzhou Baiyunshan Pharmaceutical (0874) rose 4.9 percent to close at HK$21.50.
Real Nutriceutical proposed to raise a net of HK$321 million to HK$325 million by issuing no less than 360.01 to 364.01 million rights shares at 90 HK cents apiece to shareholders, on the basis of nine rights shares for every 40 existing shares.
That represents a 31.3 percent discount to the share price on Monday.
The net proceeds will be used for a potential acquisition of Shenzhen City Ailire Investment Consulting Co to further strengthen the distribution channels of its products.
The Shenzhen firm controls several hundreds of integrated drug retail chain stores in various provinces and cities in the mainland, Real Nutriceutical said.
Source: The Standard
It's all about "how much you made when you were right" & "how little you lost when you were wrong"