CICC-backed Sunshine Guojian Seeks To Raise $248m In STAR Market IPO

China International Capital Corporation Limited (CICC)-backed biopharma firm Sunshine Guojian Pharmaceutical (Shanghai) Co., Ltd has kicked off the subscription exercise for its initial public offering (IPO) targeting to raise 1.7 billion yuan ($248 million) on the Nasdaq-style STAR Market of the Shanghai Stock Exchange (SSE), according to a company filing. 

The company intends to offer up to 61.62 million common shares at a price of 28.18 yuan ($4) apiece. 

The proceeds will be deployed for research and development of new drugs targeting oncology, autoimmunity and ophthalmic conditions.

Huatai United Securities is the principal underwriter, while Huatai and CITIC Securities are the joint sponsors for the deal. Guojian will float the shares under the symbol “688336”.

Guojian, a subsidiary of Hong Kong-listed 3SBio Group, has developed two listed drugs and a strong pipeline.

The company booked annual revenues of 1.10 billion yuan ($158 million), 1.14 billion yuan ($163 million) and. 1.17 billion yuan ($168 million) for the past three years. 

After the IPO, Hong Kong-based Full Gain Pharmaceutical will remain the controlling shareholder in Guojian with 35.95 per cent stake. 3SBio (Shenyang) will have a 6.43 per cent stake. 

Chinese cross-border investment bank CICC along with CITIC Private Equity Funds Management had collectively infused $7.9 million in Guojian’s Series A round in 2010.