Shanghai Pharmaceuticals has reportedly priced its proposed initial public offering in Hong Kong, which will raise up to $2.13 billion.

The IPO for China's second-largest distributor of pharmaceutical products (behind Sinopharm) and the country's third-largest drug manufacturerer, will raise up to HK$16.6 billion, according to Reuters, as Shanghai Pharma plans to price its offering in a range of HK$22.5-$25.0 per share. That represents a 2011 price to earnings ratio of 26.6-29.6 times, the news agency says, adding that the deal comprises 664 million primary shares.

The listing is expected on May 20 and it is thought that a number of big investors are already lined up. Earlier this month, the Financial Times reported that Shanghai Pharma has received a commitment for $300 million of stock from Temasek, the Singapore state investment agency, while Pfizer, the Hong Kong investment manager Guoco Group and Bank of China may buy a total of $250 million of shares between them.

Credit Suisse, Deutsche Bank and Goldman Sachs are thought to be the joint global co-ordinators and bookrunners for the offering.