China’s leading cancer screening company New Horizon Health said its offering was oversubscribed 4,100 times; over 1.07 million retail investors have subscribed to its shares.
The subscription period ends today for the cancer screening provider. The minimum purchase price was HK$13,464.33 for 500 shares. New Horizon prepares to go public in Hong Kong on Thursday at HK$26.66 apiece, the high end of the pricing range. It raises HK$2.04 billion ($263.1 million) in its initial public offering.
The IPO represents about 18% of the company’s enlarged share capital.
Haitong International, BOC International, Daiwa Securities, and VMS Securities are the bookrunners, while Goldman Sachs and UBS are the joint sponsors on the offering. There is also an over-allotment option of 11.5 million shares.
New Horizon said it intends to use the proceeds for the additional development of its product ColoClear, as well as for commercialization and expanding its pipeline.
Established in 2015, New Horizon makes digestive tract cancer test kits for home use, designed to give individuals easier access to diagnostic procedures.
According to its prospectus, the company is the pioneer and only player with NMPA-approved products in China’s cancer screening market, which has high entry barriers protected by technical, clinical, and regulatory hurdles. Its flagship product, ColoClear, is the first and only NMPA-approved molecular cancer screening test in China and has demonstrated clinical results with the sensitivity of 95.5% for colorectal cancer and 63.5% for advanced adenoma.
The company is backed by FountainVest Partners, Softbank’s SB China Capital, Duke University, and Qiming Venture Partners.