China's CanSino Biologics Inc. plans to offer 57,248,600 H Shares as part of its Hong Kong IPO priced in the range of HK$21 to HK$22 per H share.
The Tianjin-based vaccine developer expects to receive net proceeds of about HK$1.12 billion, assuming a per-share offer price of HK$21.50.
CanSino is offering 5,725,200 H shares to Hong Kong investors as well as 51,523,400 H shares internationally. The company expects to announce the IPO price around March 27, with trading expected to begin March 28.
The company expects to achieve a market capitalization of HK$4.80 billion on completion of the offering, assuming an offer price of HK$22 per H share.
CanSino Biologics offers Ad5-EBOV, the first approved Ebola virus vaccine in China for emergency use and national stockpile. Other products include two vaccines undergoing phase 3 development for meningococcal meningitis — a serious, potentially life-threatening inflammation of the membranes covering the brain and spinal cord.
In total, the company is developing 15 vaccine candidates for 12 disease areas including diphtheria, tetanus and pertussis, as well as tuberculosis.
Xuefeng Yu is the executive director, CEO and co-founder of the company and previously served as a scientist and the head of vaccines development and production at French pharmaceutical giant Sanofi's vaccine unit Sanofi Pasteur SA.
The company, which has also received investment from Eli Lilly and Co., reported a net loss of 138.3 million yuan in 2018 and has not yet generated any revenue from the sale of its approved vaccine products.
CanSino plans to use about 80% of net proceeds from the IPO for the commercialization of its core products along with other key products, about 10% for funding preclinical vaccine candidates and the remaining 10% for working capital and other general corporate purposes.
The company said Morgan Stanley Asia Ltd. and CLSA Capital Markets Ltd. are acting as joint sponsors for the IPO. Further, Morgan Stanley, CLSA, China International Capital Corp., Hong Kong Securities Ltd., ICBC International Capital Ltd. and CMB International Capital Ltd. are acting as joint book runners for the offering. Sidley Austin and Tian Yuan Law Firm are acting as legal advisers to the company.
As of March 15, US$1 was equivalent to 6.71 yuan, according to S&P Global Market Intelligence.