Paris exchange to list first Chinese company

PARIS, Aug 17, 2006 (AFP) – Chinese pharmaceutical group Watson Biotech is set to become the first Chinese company floated on the Paris stock exchange when it lists in the French capital later this year, the company’s advisors said Thursday.

The group, based in Xian in central China’s Shaanxi province, specialises in extracting active ingredients from trees which are used in the generic anti-cancer drug paclitaxel.

“It will be a first in continental Europe,” said the head of Europe Finance and industry (Efi), Louis Thannberger, who is advising the Chinese group on the initial public offering.

Euronext, which operates the Paris, Amsterdam, Brussels and Lisbon markets, confirmed that the listing was a first for a Chinese company on its exchanges.

About 40 Chinese groups have been floated in London, mainly on the AIM (Alternative Investment Market) for small companies, and others are quoted in the United States.

Watson Biotech reported sales of EUR 7.6 million in 2005 and a net profit of EUR 1.46 million.

Thannberger said that the group would most likely list on the Alternext market for small and medium-sized companies “before the end of the year” and would have a capitalisation of EUR 60 million.

“It’s quicker (on Alternext). There is a real frenzy in China for companies to get listed quickly,” he said.

The listing would involve a rights issue aimed at raising EUR eight million.

Subject: French news