HONG KONG (May 27): 3SBio Inc, a Chinese producer of biopharmaceutical products, and its private-equity backer are seeking as much as US$712 million from a Hong Kong initial public offering.

The company, based in the northeastern Chinese city of Shenyang, and an arm of Citic Private Equity Funds Management are offering 606.1 million shares at HK$8.30 to HK$9.10 apiece, according to terms for the deal obtained by Bloomberg.

New shares account for 80 percent of the sale, the terms show.

3SBio is adding to the US$11.9 billion of first-time share sales in Hong Kong this year after the city’s stock market surged to a seven-year high on an influx of Chinese money.

The company’s products are used to counteract the side effects of chemotherapy in cancer patients and treat anemia in people suffering from chronic kidney disease.

Six cornerstone investors agreed to buy a total of US$150 million in stock in the offering.

Singapore sovereign wealth fund GIC will invest US$30 million, while BlackRock funds have committed to buy US$40 million of shares, the terms show.

Citic Securities, Goldman Sachs and Morgan Stanley are joint sponsors of the offering.

3SBio plans to use 45 percent of the proceeds to fund acquisitions that will expand its pharmaceutical portfolio in therapeutic areas, according to the terms.

3SBio aims to price the offering on June 4 and start trading a week later.