Futu News, September 25, this Friday.Genting Xinyao-B (01952.HK) $According to the announcement, the company plans to issue about 63.547 million shares from September 25 to 30, including 6.355 million shares for public offering and 57.192 million shares for international offering at an issue price of HK $50-55 per share, which is expected to be listed on October 9.

It is reported that Genting Xinyao is a late-clinical biopharmaceutical company, whose business includes the permission, clinical development and commercialization of the first or best therapy of its kind in the world. the current product portfolio covers oncology, immunology, heart and kidney diseases and infectious diseases.

The company operates in an imported licensing business model, and all eight drug candidates in its product pipeline (including two core drug candidates) and their related patents have been licensed from third parties.

It is worth noting that the company is favored by the world's top institutional investors, including Cambridge Capital, Temasek, Hillhouse Capital, Junli Henderson, Blackrock and so on. Cambridge Capital (CBC), one of Asia's largest health care specialist investment platforms, has a 62.4 per cent stake.

In terms of financial data, the company did not generate any income during the track record period, and the net operating loss increased from RMB 127 million in 2018 to RMB 176 million in 2019. According to the prospectus, the company is expected to continue to incur net losses in the foreseeable future until one of the existing or future drug candidates is approved and commercialized.

In terms of industry, China's pharmaceutical market ranks second in the world. Its size increased from 1.2207 trillion yuan in 2015 to 1.633 trillion yuan in 2019, with a compound annual growth rate of 7.5 per cent from 2015 to 2019. The market is expected to grow further from 2.2288 trillion yuan in 2024 to 3.1945 trillion yuan in 2030, with a compound annual growth rate of 6.2 per cent from 2024 to 2030. At the same time, regulatory reform and wider market access provide brighter prospects for China's innovative and patented products.

As for cornerstone investors, a number of cornerstone investors agreed to subscribe for a total of about US $225 million in the number of shares available for subscription at the offering price, including RA Capital, CBC, Janchor Partners, GIC, Blackrock Fund, Cormorant, Hillhouse Capital, Invus, Lake Bleu Prime, Ober Capital Fund, Rock Springs Capital, Indus, Octagon Investments, Surveyor, Tybourne and Woodline Fund.

In terms of fund-raising purposes, the company intends to use the net proceeds from the share sale for the following purposes: 60% will be used to fund ongoing and planned clinical trials, registration preparation and other steps or activities related to commercialization of the company's four pillar products; 15% will be used to fund ongoing and planned clinical trials, registration preparation and potential commercialization of other drug candidates in the company's pipeline. 15% is used to fund the company's business development activities and the expansion of drug pipelines; 10% is used for working capital and general and administrative purposes.