Hillhouse-backed Junshi Biosciences eyes $684m in STAR Market IPO

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. 

Singapore Reporter/s

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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.