Wangshan Wangshui (02630) Launches Hong Kong IPO, Seeking Up to HK$600 Million
Biopharmaceutical company Wangshan Wangshui (New listing number: 02630) commenced its initial public offering (IPO) in Hong Kong today, October 28th, with a price range of HK$32 to HK$34 per share. The company plans to issue 17.598 million H shares, representing 10% of its total share capital, aiming to raise up to HK$600 million. As of Tuesday afternoon, the IPO had already secured margin subscriptions totaling HK$2.35 billion, indicating an oversubscription of 38.3 times relative to the HK$59.83 million public offering tranche.
The IPO, sponsored solely by CITIC Securities, is open for subscription untill November 3rd, with trading expected to begin on November 6th. Investors require a minimum investment of HK$6,868.6 per lot of 200 shares. Wangshan Wangshui focuses on developing treatments for viral infections, neuropsychiatric disorders, and reproductive health, currently marketing two core products – LV232 for major depression and TPN171 for erectile dysfunction – alongside a pipeline of six additional drug candidates in clinical and preclinical stages.
Despite its product portfolio,Wangshan Wangshui reported a notable revenue decrease in 2023,with earnings falling to RMB 11.832 million, a 94.1% year-on-year decline. The company also experienced a net loss of RMB 210 million, contrasting with a profit of RMB 12.089 million in 2022.
The company intends to allocate the net proceeds from the IPO as follows: 38% to research and progress of core products, 27% to othre product candidates, 10% to the construction of a Qingdao manufacturing facility, 15% to bolster sales and marketing efforts, and the remaining 10% for working capital and general corporate purposes.
