CK Life preparing IPO
preparing an initial public offering this week which it is hoped
will raise some HK$2.61 billion (€0.34bn) to finance future growth.
CK Life Sciences International, the Chinese biotech company, is preparing an initial public offering this week which it is hoped will raise some HK$2.61 billion (€0.34bn) to finance future growth.
CK Life operates in five product areas - nutraceuticals and dietary supplements, fertilisers, bio-remediation (which uses organic materials to degrade pollution), pharmaceuticals and dermatologicals such as skincare products.
Li Ka-shing, chairman of parent company Cheung Kong (Holdings), said he was optimistic about the future growth of the biotech company, although he admitted that it was likely to remain in the red for several years. He was not willing to predict when the company would finally turn a profit, although he stressed that the diversified product mix of CK Life would help fuel its growth.
CK Life posted a net loss of HK$22.15 million on sales of HK$134,160 in the three months to 31 March, compared with a net loss of HK$57.93 million on turnover of HK$148,200 in the year to 31 December 2001.
The company said it would use about one-third, or HK$850 million, of its HK$2.48 billion net proceeds on research and development, with half of the proceeds to be used up by the end of 2004 due to costly research and development.
