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| 1. |
Why have you decided to seek a listing? |
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It is a natural next step for Chi-Med, incentivising our executives in line with our listed healthcare peers and raising our international visibility. The funds raised will primarily be used to fund our drug R&D programme, China healthcare, and consumer businesses as well as general corporate purposes. |
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| 2. |
Why have you chosen AIM? |
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We are an internationally focussed company and felt AIM offered good understanding and knowledge of high growth companies particularly in the pharmaceutical and healthcare space and was consonant with our current scale and phase of development. |
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| 3. |
Why now? |
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Primarily to advance our drug R&D pipeline. While our China Healthcare business is cash generative and profitable, we wish to invest significantly in our drug research and development programmes during 2006, 2007 and 2008. We will also use funds to finance our consumer products business, and for further China healthcare acquisitions. |
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| 4. |
When do you expect to complete the IPO? |
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In May 2006. |
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| 5. |
If the China Healthcare business in cash generative, why is it necessary to raise additional funds? |
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The China Healthcare business is cash generative and profitable but the cash generation is not sufficient to fund our R&D programmes at this stage. |
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| 6. |
How much are you raising? |
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Approximately £40 million. |
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| 7. |
What will the free float be? |
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HWL intend to remain a majority shareholder. The resultant free float will be dependent on valuation but will be approximately 28%. |
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| 8. |
What are you planning to do with the funds following IPO? |
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The proceeds of the Placing will be applied as follows:
- Contingent on the success of the existing pipeline the Company intends to use approximately £30 million to finance Hutchison MediPharma's drug research and development programmes during 2006, 2007 and 2008;
- approximately £3 million will be used to finance consumer products business; and
- approximately £2 million for China Healthcare CAPEX and working capital purposes;
- the balance will be used for general corporate purposes;
- the Directors will continue to seek out new opportunities for acquisitions and strategic joint ventures to expand or consolidate the China healthcare business. Such opportunities may be funded by the existing China healthcare business of the Group but may also require external funding.
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| 9. |
Who has been financing the company to date? |
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Chi-Med has been a wholly owned subsidiary of Hutchison Whampoa Ltd. and has been funded by HWL. |
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| 10. |
Does this IPO mean HWL no longer wishes to invest in Chi-Med? |
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HWL will remain a majority shareholder after the listing. Chi-Med believes it will benefit from a close ongoing relationship with HWL and that HWL's strong reputation, organisational resources, and extensive experience in China provide a competitive advantage in identifying and securing opportunities for the further development of the Group. |
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