Chinese Pharma Firm Easton Eyes $193m In STAR Market IPO

Chinese pharmaceutical company Chengdu Easton Biopharmaceuticals Co Ltd plans to raise 1.3 billion yuan ($193 million) in an initial public offering (IPO) on the Nasdaq-style STAR Market of the Shanghai Stock Exchange, according to a company filing.  

Easton, which kicked off its online roadshow on Thursday, has offered 30.09 million common shares at 44.36 yuan ($6.4). Its shares have been oversubscribed 4,473 times.

The company will deploy the IPO proceeds toward its manufacturing base besides drug clinical trials and development, among others.

Chengdu-based Easton’s products are used in the therapy areas for diseases including cancer, diabetes and cardiovascular risks.

The company’s annual revenues for the past three years stood at 947 million yuan ($137 million) in 2019, 769 million yuan ($111 million) in 2018 and 476 million yuan ($69 million) in 2017, it said in its prospectus. 

After the IPO, majority shareholders in Easton will include Shanghai-based healthcare-focused Lyfe Capital (4.25%), state-owned CITIC Securities (2.08%), GL Capital Group (0.99%), and asset management firm CreditEase (0.74%).  

CITIC’s private equity firm Goldstone along with Roton Capital and Shenzhen Chaxi Zhiku Investment had collectively injected 70 million yuan ($10 million) in Easton in 2016. Prior to that, Easton had secured an undisclosed Series A funding from CreditEase in 2015. 

CITIC Securities is the lead underwriter for the deal, while Guodu Securities serves as the joint underwriter.