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Jiuyuan Genetics (02566.HK)

Subscription Period: November 20 to November 25, 09:30

Offer Price: HKD 11.48 to HKD 12.56

Entry Fee: HKD 2537.3 per lot of 200 shares

Joint Sponsors: Huatai International

Expected Listing Date: November 28

Jiuyuan Genetics (02566.HK) commenced its public offering from November 20 to 25, with the aim of globally offering 45.39 million H-shares. Out of this total, 10% is allocated for public sale in Hong Kong, while the remaining 90% is designated for international placement. Priced between 11.48 and 12.56 Hong Kong Dollars per share, with each lot comprising 200 shares, the entrance fee per lot amounts to approximately 2537.3 Hong Kong Dollars. Jiuyuan Genetics is scheduled to be listed on November 28, with Huatai International acting as the sole sponsor.

(Source: Jiuyuan Genetics Prospectus)

Company Profile

Established in 1993, Jiuyuan Genetics is a Chinese biopharmaceutical company with over three decades of experience in researching, producing, and commercializing biopharmaceuticals and medical devices. The company focuses on four rapidly expanding therapeutic areas: orthopedics, metabolic disorders, oncology, and hematology. According to Frost & Sullivan data, these four therapeutic sectors collectively accounted for 51.5% of China's total pharmaceutical sales in 2023. In recent hearing documents, Jiuyuan Genetics stated its non-involvement in genetic engineering operations and its current plan to change its corporate name to Hangzhou Jiuyuan Genetics Biopharmaceutical Co., Ltd. The company has committed to providing updates on this name change in its annual and interim reports.

Financial Summary

As per the prospectus, Jiuyuan Genetics reported revenues of 1.307 billion, 1.125 billion, and 1.287 billion Yuan for the years 2021 to 2023, respectively. Net profits for the corresponding periods were 119 million, 59.9 million, and 119.8 million Yuan, respectively. In the most recent hearing document, Jiuyuan Genetics disclosed its performance for the first half of 2024, with revenues of 702 million Yuan and a net profit of 105 million Yuan, primarily due to increased sales revenue from BoneGuide.

In this IPO, Jiuyuan Genetics introduced seven cornerstone investors, including subsidiaries of Fosun Pharma and Ali Health, who collectively subscribed for approximately 350 million Hong Kong Dollars. The participation of these cornerstone investors not only enhances confidence in Jiuyuan Genetics' IPO but also provides financial support for the company's future growth.

Jiuyuan Genetics plans to allocate around 40% of the raised capital to the continuous research and development of strategically significant therapeutic programs, approximately 30% for the marketing and commercialization of existing and near-commercial products, around 10% for exploring strategic partnerships, 10% for manufacturing systems, establishing new production lines, upgrading and automating existing production facilities, and about 10% for operational capital and other general corporate purposes.

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✅ IPO financing 0%* 

✅ 15x purchasing power^