On November 28, 2024, the biopharmaceutical company Hangzhou Jiuyuan Gene Engineering Co., Ltd. (referred to as Jiuyuan Gene) (02566.HK) successfully listed on the main board of the Hong Kong Stock Exchange.

In this IPO of Jiuyuan Gene, a total of 45.3988 million H shares were globally offered, accounting for 18.50% of the company's total shares after the completion of the offering. The offer price per share was set at the upper limit of 12.42 Hong Kong dollars, raising a total funding amount of approximately 0.564 billion Hong Kong dollars, with net proceeds of about 0.485 billion Hong Kong dollars.

In this IPO, Jiuyuan Gene received 675.83 times oversubscription for its public offering, and 1.18 times oversubscription for its international offering.

In this IPO of Jiuyuan Gene, 7 cornerstone investors were introduced to subscribe a total of 22.5434 million shares, approximately 0.352 billion Hong Kong dollars of the offered shares, including CDH Investments subscribing 25 million USD, Fosun Pharma (600196.SH,02196.HK) through Fosun Industrial subscribing 5 million USD, Nanjing King-Friend Biochemical Pharmaceutical (603707.SH) through Hong Kong King-Friend subscribing 5 million USD, Ali Health (00241.HK) through Ali Health Hong Kong subscribing 3 million USD, Jointown Pharmaceutical Group (600998.SH) through Jointown International subscribing 3 million USD, Founder Mr. Wu Qiyuan of Junheng Hotel (301073.SZ) subscribing 21.47 million Hong Kong dollars, and Delta Capital subscribing 12 million Hong Kong dollars. Cornerstone investors' subscriptions accounted for approximately 49.66% of the shares offered and around 9.19% of the total shares after the offering.

The prospectus reveals that in the shareholding structure post-listing of Jiuyuan Genes, Huadong Medicine (000963.SZ) holds 17.16% through Zhongmei Huadong; Mr. Li Bangliang holds 1.17% directly, being considered to hold 16.25% via Hangzhou Huasheng; employee stock platforms Chengheda, Nanbeiju, Qingfanghao hold 2.98%, 2.06%, 1.57% respectively; CQFE (Spain) holds 12.22%; Insigma Technology (600797.SH) holds 9.99% via Zhejiang Insigma; Yang Linzhen (99%) and Chen Yanfeng (1%) hold 8.15% through Highland Pharma; Hangzhou Municipal Government (90.59%), Hangjin Investment under Zhejiang Provincial Finance Department holds 7.10%; Huang Qing, Wu Yuehua hold 3.99% through Zhejiang Wanliyang; Mr. Wu Qiyuan holds 2.79% (as a cornerstone investor at the offering price midpoint); other participating global investors hold 17.78%.

Established in 1993, Jiuyuan Genes, as a biopharmaceutical company with over 30 years of experience in the research, production, and commercialization of biological drugs and medical instruments, focuses on the four rapidly growing therapeutic areas of orthopedics, metabolic diseases, oncology, and hematology. As of November 3, 2024, Jiuyuan Genes has diversified its product portfolio around the four mentioned therapeutic areas, including 8 marketed products and over 10 investigational products. The 8 marketed products consist of 1 innovative drug-device combination and 2 biological products, and 5 chemical drugs in orthopedics, oncology, and hematology fields. All products are listed in the National Medical Insurance Catalog, with GioTing, Yirjo, and Jifuwei being selected in the national centralized procurement bidding process; additionally, Jilifen, Jijufen, and Jipailin are included in the national centralized procurement plan. Jiuyuan Genes has established a nationwide sales and distribution network, covering over 1,300 tertiary hospitals and more than 3,500 other hospitals and medical institutions as of June 30, 2024, spanning over 95% of the prefecture-level cities and counties nationwide.

The intermediaries who have primarily undertaken the listing of Jiuyuan Gene (02566.HK) in this IPO are:

Huatai International serves as its exclusive sponsor, overall coordinator, joint global coordinator, joint bookrunner, and joint lead manager;

CITIC Securities acted as its overall coordinator, joint global coordinator, joint bookrunner, joint lead manager;

CICC, CMB International, Haitong Securities acted as its joint bookrunners, joint lead managers;

Ernst & Young served as its auditor;

Zhejiang Tiante, Co-Win acted as its company's Chinese lawyers, company's Hong Kong lawyers;

JunHe acted as its brokerage China lawyer;

Jiayuan, Akin Gump Strauss Hauer & Feld acted as its brokerage Hong Kong and USA lawyers;

Zhuoshi Consulting is its industry consultant.

Jiuyuan Gene prospectus link:

https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1120/2024112000020_c.pdf