Gan & Lee Pharmaceuticals has kicked off its IPO subscription exercise as it seeks to bag a total of 2.5 billion yuan ($359 million) on the Main Board of the Shanghai Stock Exchange (SSE).
Backed by Chinese venture capitalist Qiming Venture Partners, the company intends to offer up to 40.2 million common shares at a price of 63.32 yuan ($8.9) apiece, according to the bourse. It has sold 2,881,400 shares amounting to 182 million yuan ($26 million).
Gan & Lee plans to use the proceeds to develop a slew of projects in areas of sales and marketing, and spruce up new drug application in the US, and its R&D centre. Besides, a part of it will be used to replenish working capital.
CITIC Securities serves as its principle underwriter for the deal, while Orient Securities and Orient Securities Investment Banking are its joint sponsors. The company will float the shares under the symbol “602087”.
Gan & Lee, established in 1998, is engaged in the business of insulin and its analogues for diabetes therapy. The company derives its revenues from insulin injections. Last month, its third-generation insulin analog Aspart Injection received approval from National Medical Products Administration.
Its prospectus shows that it generated annual revenues of 2.9 billion yuan ($409 million) in 2019 and 2.4 billion yuan ($337 million) in 2018. Its net profit in 2019 stood at 1.2 billion yuan ($165 million), up 934 million yuan ($33 million) compared to that of 2018.
Headquartered in Beijing, Gan & Lee has manufacturing bases in Jiangsu and Shandong too. In addition, it owns an overseas subsidiary in the US.
Qiming had first invested in the company in 2010 – it had pumped in 100 million yuan ($14 million) in it. Subsequently, in 2011, Qiming along with Goldman Sachs and GL Capital had collectively infused 336 million yuan ($47 million). Later in 2015, Hillhouse had made an undisclosed strategic investment in Gan & Lee.