Qilian International Holding Group Ltd. has filed for an initial public offering (IPO) on the U.S. stock market on Monday.
Qilian intends to raise about 28 million U.S. dollars by offering 4 million shares at a price range of 5 to 7 dollars, the company stated in its prospectus.
The Jiuquan, China-based company founded in 2019, it is a pharmaceutical and chemical company that principally engaged in the research, development, and production of licorice products, oxytetracycline products, traditional Chinese medicine derivatives ("TCMD") product, heparin product, sausage casings, and fertilizers.
Qilian reported revenues and net income for the six months ended March 31, 2019 was $27.2 million and $5 million, respectively, which is increased by 4.3% from $25.1 million and 100% from $2.5 million for the same period in 2018.
From 2013 to 2017, the total output volume of chemical medicines in China rose from 2,633.0 thousand tons in 2013 to 3,554.4 thousand tons in 2017, representing a CAGR of approximately 7.8% during the period. It is expected to reach 5,252.8 thousand tons in 2022, with a CAGR of approximately 8.2% from 2018, according to the National Bureau of Statistics of China and the Frost & Sullivan Report.
Base on two of the major product series - licorice products and oxytetracycline products, Qilian shares its future strategies on them. Qilian aims to enhance further market awareness of the Gan Di Xin® brand (an innovative antitussive and expectorant medicine made from raw licorice materials) in China market. It estimates that it will spend approximately $118,000 annually on marketing expenses in the near future. The company also plans to increase its Qilian Shan® Oxytetracycline Active Pharmaceutical Ingredients ("API") production capabilities. It intends to increase its production capacity to 10,000 tons by 2024 and estimates that the fixed assets investment will be approximately $18 million.
According to these strategies, Qilian said the proceeds of this offering will be mainly used for increasing production capacities, marketing purposes as well as acquiring upstream and downstream companies manufacturing traditional Chinese medicine pieces, reported by Xinhua News.
The company plans to list on the New York Stock Exchange under the ticker symbol "QLI."
CITIC Securities Co., Ltd. will act as the underwriter on the deal.