China’s Xi’an Giant Biogene Technology has embarked on a fundraising round that is likely to see Hillhouse Capital Group and others buy at least 4 billion yuan ($630 million) worth of shares, two people familiar with the matter said.
The share sale, a combination of new and existing shares, will value the maker of medicinal skin care treatments at 19 billion yuan ($3 billion), the people, who declined to be named as the information was private, said.
The deal is near closing, but the total investment size may still change. The fundraising will likely be followed by an initial public offering in Hong Kong, the sources added.
Xi’an Giant Biogene and Hillhouse did not immediately respond to Reuters requests for comment.
The Chinese market for so-called “medical aesthetics” products and services is expected to growth 20% in 2021, compared with less than 10% last year, according to a forecast by China Economic Information Service.
Xi’an Giant Biogene said that during China’s Singles’ Day in November, the world’s biggest online shopping event, it had only taken 45 minutes for sales of its key product, the collagen-based face application Kefumei, to exceed those logged for the whole day last year.
- Reuters with additional editing by Kevin Hamlin
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