Orchid Asia lists portfolio company in Hong Kong

Orchid Asia, a China-focused growth capital provider, has made three times its money in paper gains from the listing of a portfolio company in Hong Kong on 1 February.

Orchid Asia, a China-focused private equity firm, has seen its investment triple, in paper gains, from the initial public offering of Wuyi International Pharmaceutical Company on Hong Kong Stock Exchange, Gabriel Li, managing director of Orchid told PEO.

The private equity firm will not be able to realize its investment until early August, at the earliest.

The offer price of Wuyi was HK$1.80 ($0.23), or three times the entry price for Orchid Asia, which made its investment in July 2006, Li said. At the close of trading today, Wuyi traded at $2.02 a share.

Last year, Orchid Asia invested $18 million for a 9.5 percent stake in Wuyi, which makes and sells branded prescription and over-the-counter western pharmaceuticals and modern Chinese medicine products, according to a statement.

The investment in Wuyi was made from Orchid Asia III, a $181 million fund which held its final close at the end of 2005. More than half of the fund has been invested in nine deals, the first concluded in 2004, shortly after a first close on the fund.