S&C Advises Underwriters of Zhaoke Ophthalmology Spin-Off and IPO

May 19, 2021

Zhaoke Ophthalmology Limited completed its global offering and spin-off listing on The Stock Exchange of Hong Kong Limited on April 29, raising US$267 million (before exercise of over-allotment option). The listing represented Zhaoke Ophthalmology's spin-off from its parent company, Lee's Pharmaceutical Holdings Limited, which is also listed on The Stock Exchange of Hong Kong Limited. The global offering consists of an international offering under Rule 144A and Regulation S and a public offering in Hong Kong. Zhaoke Ophthalmology Limited's market capitalization at listing was US$1.156 billion (before exercise of over-allotment option), which was approximately 3.15 times that of Lee's Pharmaceutical Holdings Limited.
 
Zhaoke Ophthalmology is an ophthalmic pharmaceutical company with a drug pipeline of 25 candidates, including 13 innovative drugs and 12 generic drugs. Its core products, Cyclosporine A ophthalmic gel (indicated for dry eye disease) and ZKY001 (indicated for corneal epithelial defect), are expected to be commercialized in the fourth quarters of 2021 and 2024, respectively.
 
S&C acted as Hong Kong and U.S. counsel to the joint sponsors and underwriters, including Goldman Sachs and Jefferies. The team was led by Gwen Wong in Beijing, and included Kay Ian Ng, Ching-Yang Lin and Shirley Mak in Hong Kong and Brian Hu in Beijing.