SIIC Medical Science and Technology (Group) Ltd. (SIIC MedTech) on November 22 announced that it will be listed on the Growth Enterprise Market (GEM) board of the Hong Kong Stock Exchange on December 2, this year.

SIIC MedTech, a major firm developing traditional Chinese medicine in China, plans to raise approximately 351.75 million HK dollars (45.1 million US dollars) through the offer of 215.8 million HK dollars (27.6 million US dollars) new shares, including 110 million HK dollars (14.1 million US dollars) new issue shares and 105.8 million HK dollars (13.6 million US dollars) existing shares.

Ninety percent of the shares will be placed with institutional investors and the remainder offered for sale to the general public in Hong Kong. The shares will be sold at a price of 1.63 HK dollars (21 US cents) per share.

Based on a profit forecast of not less than 60 million HK dollars for the year ending December 31, 1999, the forecast earnings per share will be 12.3 HK cents, representing a weighted average price earnings multiple of 13.3 times.

The proceeds raised through the listing will be used on traditional Chinese medicine research and development projects, enhancing production capacities and market expansion.

A subsidiary of Shanghai Industrial Holdings Ltd., SIIC MedTech focuses its business development on modernization and scientific applications of Chinese medicines. Utilizing the synergy and strength in the mainland and Hong Kong, the group aims to bring modernized Chinese medicine into the global pharmaceutical market. (Xinhua)