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Tongjitang To Delist From New York Stock Exchange

This article was originally published in PharmAsia News

Executive Summary

Barely a year after it listed on the New York Stock Exchange, Guizhou Tongjitang Pharmaceutical, the first TCM pharmaceutical IPO on the exchange, has announced plans to buy back all its shares in circulation. At $2.55 per share, this is equivalent to per American depositary share of $10.20. Tongjitang's shares have been languishing below its IPO price of $10, even though it hit $12.88 at the highest point. The company believes its shares are greatly undervalued, thus the decision for the $110 million buy-back. Informed sources revealed that Morgan Stanley will provide a bridging loan to Tongjitang for the purchase. The buy-back represents the first for a China company listed overseas, and may dampen the enthusiasm of other enterprises seeking IPOs abroad. (Click here for more - Chinese Language)
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