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Shares of drugmaker Shenzhen Hepalink Pharmaceutical Co Ltd fell below its initial public offering price Tuesday, costing the company's founders billions of yuan, the National Business Daily reported today.
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Li Li, founder and chairman of Shenzhen Hepalink Pharmaceutical Co. |
Shares of Hepalink closed at 144.25 yuan Tuesday, down 3.75 yuan from its issue price of 148 yuan, the highest on record for a Chinese stock.
Analysts say Hepalink's price fall is within their expectations, as its expensive IPO priced at 73 times its 2009 earnings, was too high for a drug material supplier.
Hepalink, the world's biggest maker of blood-thinning heparin products, on May 6 raised 5.9 billion yuan through issuing 40.1 million shares in the most expensive IPO. The price of Hepalink surged 18.36 percent to close at 175.17 yuan ($25.66) on that day.
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Based on the closing price on May 6, the value of the stake exceeded 50 billion yuan ($7.3 billion), surpassing Wang Chuanfu, chairman of electric car manufacturer BYD, China's richest person in 2009 with a fortune of $5.1 billion, according to the 2009 Hurun China Rich List.
But the price fall Tuesday shrank the couple's wealth to 41.5 billion yuan, down 9 billion yuan.