Author: Gordon Platt





China Nepstar Chain Drugstore, already the largest drugstore in China based on the number of directly operated outlets, plans to vastly increase its size with the proceeds of its initial public offering of American depositary receipts on the New York Stock Exchange. JPMorgan Chase announced the launch of China Nepstar’s ADR in conjunction with the company’s $384 million IPO last November. Each ADR is equivalent to two of the company’s ordinary shares.

Shenzhen-based China Nepstar, which is incorporated in the Cayman Islands, offers a wide variety of merchandise, including drugs and nutritional supplements, herbal products, personal-care items and convenience products. Its shares rose 15% in their debut, giving it a market capitalization of nearly $4 billion. Goldman Sachs was the lead manager of the IPO, with Merrill Lynch and CLSA helping to underwrite the issue.

Separately, The Bank of New York Mellon announced it was selected as depositary for the NYSE-listed ADR of Agria, the first agricultural company from China with an ADR program. The company sells corn seeds, sheep-breeding products and seedlings for raspberry and blackberry bushes and pine trees.


Gordon Platt