Mabpharm Ltd. is offering 783,580,000 shares at a price between HK$1.50 and HK$1.95 in its IPO on the main board of the Hong Kong Stock Exchange.
The pre-revenue biosimilar maker said 705,222,000 are international offer shares while the remaining 78,358,000 will be offered in Hong Kong. Biosimilars are intended to be lower-cost versions of biologic therapies.
The Hong Kong portion of the IPO will begin May 20 and end May 24. The company expects its shares to be listed on the stock exchange beginning May 31.
Assuming that the global offering is priced at midpoint, Mabpharm will generate net proceeds of about HK$1.24 billion.
Mabpharm plans to use about HK$868.2 million of the proceeds to conduct research and development activities for its core products CMAB007, CMAB009 and CMAB008.
The company's CMAB007, a copycat version of Roche Holding AG's asthma drug Xolair; CMAB009, a biosimilar of Eli Lilly and Co.'s head and neck cancer drug Erbitux and CMAB008, a copy of Johnson & Johnson inflammatory disease drug Remicade are all being evaluated in clinical trials.
Meanwhile, about HK$248.6 million of the proceeds will go to R&D activities for the company's other product candidates. The company is developing CMAB809 and CMAB819, biosimilars of AbbVie Inc.'s top-selling inflammatory disease drug Humira and Bristol-Myers Squibb Co.'s cancer immunotherapy Opdivo, respectively.
Mabpharma allocated the remaining HK$121.3 million for working capital and other general corporate purposes.
China International Capital Corp. Hong Kong Securities Ltd. is the sole sponsor, global coordinator and book runner for the IPO.
Hong Kong has wooed biotechnology companies to list in the city after it revised its listing rules in April 2018 to allow pre-revenue companies to go public on its exchange. China is also planning a similar move to attract pre-revenue biotechs.