China IPO Digest: Scitop Lists On ChiNext; GaoCe Plans To Raise $83m

Beijing Scitop Bio-Tech on Monday made its debut on ChiNext while Qingdao Gaoce Technology is seeking to raise 583 million yuan ($83 million) in its STAR Market IPO. 

Scitop Bio-Tech raises $70m in ChiNext IPO

Probiotics supplements manufacturer Beijing Scitop Bio-Tech Co., Ltd, on Monday listed at a premium on Shenzhen’s startup board ChiNext after raising 489 million yuan ($70 million) in its IPO.  

The company, which kicked off the IPO subscription exercise on July 15, sold 20.63 million common shares at a price of 23.70 yuan ($3.39). Its shares opened and closed at 34.13 yuan ($4.87), a jump of 44.01 per cent compared to its IPO price. 

The IPO proceeds will be used to develop manufacturing capacity towards edible probiotics, establish a research centre and meet working capital needs. 

Its shares are listed under the symbol “300858”. Credit Suisse Founder Securities Limited served as the principal underwriter for the deal. 

Scitop’s dairy clients include Mengniu, Bright, New Hope, and Wondersun. Additionally, it has teamed up with China Agricultural University, Inner Mongolia Agricultural University, Qingdao Agricultural University and Jiangnan University to set up four joint laboratories to accelerate R&D of probiotics products. 

Kaitai Capital made an undisclosed equity investment in Scitop in 2017. In 2016, Shunxi Fund and Ningxia Gueva Fund had together infused capital in the company. 

GaoCe eyes $83m in STAR Market IPO

Qingdao Gaoce Technology Co., Ltd, a developer of tech-driven cutting solutions for hard and brittle materials serving the photovoltaic industry, is seeking to raise 583 million yuan ($83 million) on the Nasdaq-style STAR Market of the Shanghai Stock Exchange.  

Gaoce intends to sell up to 40.46 million common shares at a price of 14.41 yuan ($2.06) each. 

SZ-based Guosen Securities is acting as a lead underwriter for the deal.

Its prospectus shows that it counts solar technology giant LONGi Green Energy Technology as a top client. Gaoce registered 216 million yuan ($30.87 million) in annual earnings in the first quarter of this year, up 229.91 per cent compared to the previous year. 

Hongxian Investment Management had exclusively injected 150 million yuan ($21 million) in Gaoce in 2019. Its early-stage investors also include ChinaEquity Group, Qingdao S&T Venture Capital, among others.