Everest Medicines (HKEX: 01952) celebrated its debut Friday in Hong Kong and watched its shares peak 37% after raising 3.5 billion yuan ($451.59 million) in its IPO.
The Chinese drugmaker sold 63.55 million ordinary shares priced at HK$55 ($7.10) each. Reportedly, the deal was oversubscribed 650 times.
At the close of trading Friday, Everest traded 32% higher, at HK$72.75 per share. Earlier, it reached as high as HK$75.50.
The Shanghai-based company, which specializes in the therapy of oncology, autoimmune disorders, cardio-renal diseases, and infectious diseases, was incubated by Singapore private equity firm CBC Group in July 2017.
"This is not just a milestone for Everest, but also one for CBC," Fu Wei, the chief executive officer of CBC and chairman of Everest, said in a statement today.
He added, “We founded the business with a vision and drive to build, grow and transform Everest into an innovative biotech platform. We are incredibly proud to see what the company has managed to achieve in just three years.”
Everest, which has a portfolio of eight clinical-stage drug candidates, has yet to generate revenue. In 2019, it sustained operating losses of 176.1 million yuan ($26 million) versus 127.2 million yuan ($19 million) in 2018. Investors will have to show some patience, as commercialization could still be a couple of years away for the biotech firm.
“We expect that our medicines will have two that will be approved in the next two years and launch,” Kenny Blanchard, the CEO of Everest, said on Bloomberg Markets: Asia, on debut day.
Everest plans using the majority of the proceeds from the IPO to fund ongoing clinical trials and upcoming ones, the commercialization of four anchor products, and preparation for registration filings.
It also said it intends to use a portion of the proceeds towards expanding its drug portfolio.
Everest recently completed a Series C financing round, worth $310 million.
Goldman Sachs (Asia), Citigroup Global Markets Asia, Merrill Lynch (Asia Pacific), Nomura International (Hong Kong), and China International Capital Corp (CICC) are the underwriters on the IPO.