Shanghai Pharmaceutical Holding Co's board members have approved an 8 billion yuan (US$1.17 billion) listing plan in the Hong Kong market to replenish capital for further merger and acquisitions.

The company will float about 667 million new H shares for at least 17.6 yuan per share, representing no more than 25 percent of the total stake after the listing, it said in a statement to Shanghai Stock Exchange yesterday.

The fund will be used for mergers and acquisitions in domestic as well as overseas markets to expand its business portfolio and the listing is expected to be completed by the end of June next year.

It will also take over parent company Shanghai Pharmaceutical Group's antibiotics business to boost profitability.

"Other acquisition targets will be mainly focused at production bases that are strategically important to Shanghai Pharma's development," President Lu Mingfang said.

The average annual growth rate of China's pharmaceutical industry will be between 18 to 20 percent in the next few years, according to Lu, as the country is working on a blueprint to lift the market value of the pharmaceutical industry to between 5 to 6 percent of the nation's overall GDP in the next 10 years.

The company said it will also strengthen research efforts to cover high value-added products in key areas in the industry.