Chinas LBP Medicine Seeks To Raise $102m In STAR Market Offering

Guangzhou LBP Medicine Science & Technology Co., Ltd, a developer of pathological diagnostic products and services, on Wednesday, kicked off the subscription exercise for an initial public offering (IPO) on Shanghai’s Nasdaq-style STAR Market.

The Guangzhou-based company plans to raise 713 million yuan ($102 million), by offering 23.34 million common shares at 116.7 yuan ($16.8) apiece, according to a stock exchange filing. The shares have so far been oversubscribed 4,520 times. Minsheng Securities is the lead underwriter for the subscription.

LBP plans to invest the IPO proceeds to develop its research and manufacturing base and upgrade its sales and marketing networks.

Set up in 2005, LBP develops in-vitro diagnosis devices for oncology diseases through three proprietary tech-driven platforms—cytology, molecule, and immunology. The company has also rolled out a big data and cloud computing-driven app to provide an effective and accessible pathological diagnosis.

Its annual revenues stood at 72.80 million yuan ($10.47 million) in 2019, 62.42 million yuan ($8.98 million) in 2018, and 49.74 million yuan ($7.15 million) in 2016. As of December 2019, it has 538 million yuan ($77 million) in assets under management. 

Post the IPO, its co-founder Xiangting Cai will remain the largest shareholder with a 21.23 per cent stake, while Kaiduo Investment will retain its second-largest stake of 13.88 per cent. 

LBP’s majority shareholders are healthcare investment firm GTJA Investment Group (11.37%), Da An Gene (3.73%), Passion Capital (2.24%), CDF-Capital ($1.39%). GTJA, Passion and Yonghua Capital had together made an undisclosed investment in LBP in 2019. 

The company is also backed by Sinopharm Capital, Goldstone Investment, Hongxiu Venture Capital, Tao Capital, and Sichuan Jinyu Automobile City.