Futu news on October 28th, this Wednesday$Rongchang Bio-B (09995.HK) $According to the announcement, the company plans to issue 76.537 million shares from October 28 to November 2, including 7.654 million shares for public offering and 68.883 million shares for international offering at an issue price of 50.30-52.1HK dollars per share, which is expected to be listed on November 9.

It is reported that Rongchang Biology, founded in 2008, is an innovative biopharmaceutical company dedicated to the development and commercialization of pioneering and best-in-class biopharmaceuticals for the treatment of autoimmune (systemic lupus erythematosus SLE), oncology and ophthalmology diseases.

It is worth noting that the company's core product, Tetaxime, is the only innovative biomedicine under research in China for optic neuromyelitis spectrum disease in the stage of III clinical development. Sales revenue in the target market is growing at a compound annual growth rate of 29.3%. It is expected to obtain a conditional listing license and achieve sales in the fourth quarter of 2020.

In terms of financial data, the company currently has no approved commercial sale of its products and no revenue from product sales. During the track record period, the company made no profit and incurred an operating loss. In 2018, 2019 and the first half of 2020, the company recorded net losses of 270 million yuan, 430 million yuan and 250 million yuan respectively. The vast majority of the company's operating losses come from research and development expenses, administrative expenses and financial costs.

In terms of industry, the global biopharmaceutical market has grown rapidly in recent years and is expected to continue to grow significantly in the near future. Driven by the growth of market demand, technological progress and revenue growth of new generation products, the global biopharmaceutical market is expected to grow from US $286.4 billion in 2019 to US $768 billion in 2030.

In the same period, the growth rate of China's bio-drug market has exceeded that of the global bio-drug market. The total sales of China's biopharmaceutical market is US $48 billion in 2019, which is expected to reach US $109.6 billion in 2024 and US $200.4 billion in 2030.

As for cornerstone investors, the company has entered into cornerstone investment agreements with a number of investors, including Fidelity International, Blackrock Fund, Hillhouse Capital, GIC Private Limited, RBC Global Asset Management (Asia) Limited, CPE Greater China Enterprises Growth Fund,$Sino Biopharmaceutical (01177.HK) $, Yi Fangda Fund Management Co., Ltd., Cherry Tomatoes International Limited and Xinhua Capital Management Co., Ltd. Cornerstone investors have agreed to subscribe for a certain number of offer shares that can be purchased at a total of US $227.5 million subject to certain conditions.

In terms of fund-raising purposes, the company intends to use the net proceeds from the share sale for the following purposes: about 50% will be used mainly for the clinical development and commercialization of candidate drugs (subject to regulatory approval); about 25% will be used for the construction of new production facilities to expand commercial production capacity; about 15% will be used to repay Rongchang Pharmaceutical loans; and about 10% will be used for general enterprise and working capital purposes.