LBX Pharmacy (“LBX” or the “Group”), a portfolio company of the EQT Greater China II Limited (“EQT Greater China”), has successfully completed its Initial Public Offering on the Shanghai Stock Exchange on April 23, 2015.
The offer was oversubscribed 233 times with RMB 256.5 billion in demand (approximately USD 41 billion) for the RMB 1.1 billion new share issuance (approximately USD 177 million). LBX is China’s first discount pharmacy superstore chain and the Group operates 1,025 retail pharmacy chain stores in twelve provinces and three direct municipal cities across China as of January 31, 2015.
EQT Greater China made a co-control investment in LBX in 2008, becoming joint control owners with Mr XIE Zilong, the LBX founder and Chairman. Since EQT Greater China entered LBX, the corporate governance and management have been strengthened with the addition of three experienced board members and three independent non-executive board members. Several new key executives including Mr. Hicks Feng, the CEO, have also been recruited. LBX has leveraged EQT’s network and deep experience in the healthcare and retail sectors and visited numerous leading pharmacy groups overseas.
The central procurement and financial control functions have been strengthened and centralized. The store footprint has been further expanded and the store format upgraded with several new generations of formats and product assortment. LBX has also successfully developed a strong M&A function and achieved an impressive track record in complementary roll-up acquisitions. LBX’s market capitalization on May 6, 2015 was at RMB 13.5 billion (approximately USD 2.2 billion). EQT Greater China owns 34.77% after the IPO.
“During EQT Greater China’s joint ownership, LBX has captured the fast growth of the retail pharmacy sector in China through successful store openings and upgrades, margin improvement and acquisitions. We are grateful for the leadership of Mr XIE, the insightful contribution of the board members, and the hard work of the management team,” says Martin Mok, Partner at EQT Partners and Investment Advisor to EQT Greater China.
Martin Mok, Partner at EQT Partners, Investment Advisor to EQT Greater China II, +852 2971 5850
Kerstin Danasten, EQT Press Contact, +46 8 506 55 334
EQT is the leading private equity group in Northern Europe, with portfolio companies in Europe, Asia and the US with total sales of more than EUR 17 billion and approximately 140,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
For further information please visit www.eqt.se
Established in 2001 in Hunan province, LBX is the first discount pharmacy superstore chain in China. As of 31 January 2015, LBX operated 1,025 retail chain drugstores in 12 provinces and three direct municipal cities across China. LBX targets value-conscious customers with low prices, in-store consultation services and membership programs.