Chinese Aidea Pharma Marks Debut On STAR Market, Raises $120m

Jiangsu Aidea Pharmaceutical Co., Ltd has marked its debut on the Nasdaq-style STAR Market of the Shanghai Stock Exchange (SSE) after raising 839 million yuan ($120 million) in its IPO, according to a company filing with the bourse on Monday. 

The company, which kicked off its IPO subscription exercise on July 7, sold 60 million common shares at a price of 13.99 yuan ($2) apiece. Its share opened at 35 yuan ($5), up 150.17 per cent compared to its IPO price. Its market capital value runs to 12.85 billion yuan ($1.8 billion).

Aidea will use the proceeds for innovative drug clinical trials and active pharmaceutical ingredient (API)  research  and development. In addition, it will also use the funds to repay debt and meet working capital needs.

Shenzhen-based Huatai United Securities served as the principal underwriter for the deal. 

Aidea, which started operation in 2009 in Yangzhou, primarily works in the treatment areas for oncology and AIDS. The company counts state-owned Shanghai Pharma’s subsidiary Techpool as its largest client accounting for over 50 per cent of annual revenues for the third year in a row, per its prospectus. 

It booked 345 million yuan ($49 million) in annual revenue as of 2019, a jump of 68.32 million yuan ($9.8 million) compared to the previous year. Besides, its net profit stood at 33.64 million yuan ($4.8 million), up 25.03 million yuan ($3.6 million) compared to 2018. 

Guangzhou Weimei Investment is the largest shareholder in Aidea holding 22.50 per cent stake, while its majority shareholders comprise Starr International Investments HK (5.06%), Avidian Tech Limited (3.86%), Aegle Tech Limited (3.86%), Huatai (3.58%), and Addor Capital (3.47%). 

Huatai, through its healthcare fund, made a strategic investment in Aidea in 2017. Earlier in 2015, Huatai, through its two units, teamed up with Addor Capital to invest in Aidea. Avidian and Aegle have participated in its angel round back in 2014.