CDH-backed Biopharma Firm Fudan-Zhangjiang Eyes $151m STAR Market IPO

CDH Investments-backed Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd plans to raise as much as 1.07 billion yuan ($151 million) in an initial public offering (IPO) on the Nasdaq-style STAR Market of the Shanghai Stock Exchange. 

The company, which is now listed on the Main Board of the Hong Kong Stock Exchange (HKEX), is offering up to 120 million shares at a price of 8.95 yuan ($1.26) apiece, per a filing with the bourse. Fudan-Zhangjiang kicked off its online roadshow for the IPO on Friday, June 5.

Shanghai-based Haitong Securities serves as the principal underwriter, while investment bank China International Capital Corporation Limited (CICC) is the joint sponsor. Fudan-Zhangjiang will float its shares under 688505. 

Located at Shanghai Zhangjiang Hi-Tech Park, Fudan-Zhangjiang manufactures and distributes innovative drugs mainly for dermatology and oncology therapies. Its earnings largely come from three drugs – Ala, FuMeiDa, Libord. 

Its prospectus noted annual revenue of 1.03 billion yuan ($145 million) and a net profit of 221 million yuan ($31 million) in 2019.

Fudan-Zhangjiang operates seven subsidiaries, including Taizhou Fudan-Zhangjiang Pharmaceutical, Shanghai Tracing Bio-technology, Shanghai Baosu Pharmaceutical Technology, Fermovelty (Hongkong) Holdings, among others.

The biopharma company will use the proceeds to register its drug FuMeida in the US and acquire equity in Taizhou Fudan-Zhangjiang’s projects. 

After the IPO, China New Enterprise Investment Fund II will hold a 15.04 per cent stake in the firm, while Hong Kong and Shanghai-listed Shanghai Pharmaceutical will own 13.38 per cent equity. Shanghai Fudan Asset Operating Limited will own 2.94 per cent and cross-border merger and acquisition investment firm Shanghai Pudong Science and Technology Investment will hold a 0.69 per cent stake.