Hillhouse Capital-backed innovative biopharmaceutical company Shanghai Junshi Biosciences Co., Ltd is targeting to raise 4.8 billion yuan ($684 million) in its initial public offering on the Nasdaq-style STAR Market of the Shanghai Stock Exchange (SSE), per a company filing.
Junshi, which raised HK$3.08 billion ($394 million) in its IPO on the Stock Exchange of Hong Kong in 2018, has offered 87.13 million common shares at a price of 55.5 yuan ($7.9) apiece.
The issue opened for subscription on July 2 and has been oversubscribed 3,423 times.
Junshi will deploy the proceeds to spruce up its innovative drug research and production base, as well as to repay debt and meet working capital needs.
Chinese cross-border investment bank China International Capital Corporation Limited (CICC) is acting as its lead principal underwriter of the deal, and Guotai Junan Securities and Hating Securities are the joint sponsors. Junshi will float the shares under the symbol “688180”.
Founded in 2012, Junshi specialises in the development of macromolecular drugs driven by protein engineering technology. Junshi is based in Shanghai and has five subsidiaries in Suzhou, San Francisco and Maryland.
Its prospectus shows that its assets under management for the past three years stood at 4.41 billion yuan ($624 million), 4.25 billion yuan ($602 million) and 1.22 billion yuan ($173 million), respectively.
Following the IPO, Junshi CEO and chairman Jun Xiong will remain the largest shareholder with 10.01 per cent stake. State-owned property developer Greenland Group will also own 1.33 per cent through its investment arm Greenland Financial Holdings Group.
Hillhouse Capital, through its unit Hillhouse Capital (Zhuhai), will hold 2.89 per cent equity interest, down by 0.32 per cent. Hillhouse along with Apricot Capital and Finevalue Holdings had infused 250 million yuan ($35 million) in Junshi in 2016.
The company’s previous investors also include CICC, Lepu Medical, CITIC Securities, Sealand Innovation, Loyal Valley Capital, Orient Securities, among others.