Chinese vaccine producer Kanghua Biological raises $149m on Shenzhen’s startup board

Source: National Cancer Institute/Unsplash

Chinese vaccine producer Kanghua Biological has raised 1.056 billion yuan ($149 million) in an initial public offering (IPO) on Shenzhen’s startup board ChiNext on Tuesday.

The company, which is one of the major manufacturers of rabies vaccines in China, offered 15 million shares at a price of 70.37 yuan ($9.93) apiece.

Kanghua Biological, formally known as Chengdu Kanghua Biological Products Co Ltd, was established in 2016 by Wang Zhentao, a businessman from eastern China’s coastal city of Wenzhou – a place long known as the country’s cradle for private entrepreneurship. The inception of Kanghua Biological came four years after Wang brought his mainland leather shoe business Aokang Group to list on the Main Board of the Shanghai Stock Exchange (SSE) in 2012.

The Chengdu-based company registered 157 million yuan ($22 million) in revenue in the first three months of 2020. Its net profit attributable to shareholders stood at nearly 65 million yuan ($9 million), up 82.59 per cent compared to the same period in 2019.

According to the company’s prospectus, an investment platform of Chinese state-backed asset manager Yingke PE remains as the largest shareholder of Kanghua Biological with a 20.60 per cent stake after the IPO. Yingke PE also holds shares through another investment vehicle it launched in partnership with Chinese clinical research service provider Hangzhou Tigermed and others.

Aokang Group comes second with a 16.08 per cent stake. Wang, who serves as Kanghua Biological’s chairman of the board, is the third-biggest shareholder and holds a 13.78 per cent stake.

Kanghua Biological lists its shares under the symbol “300841.” Minsheng Securities is the lead underwriter of the deal.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.