SciClone Pharmaceuticals has launched its Hong Kong IPO that could fetch as much as HK$2.18 billion ($281.2 million).
The drugmaker, which describes itself as a U.S-based China-focused company, is offering 115.98 million shares in the range of HK$17.20 and HK$18.80 per share each, as cited by Hong Kong-based publication GlobalCapital Asia today. That would mean SciClone would raise HK$2 billion at the low end and HK$2.18 billion and the top end of its range.
The deal also includes an over-allotment option that could boost the funds to HK$2.51 billion. Morgan Stanley, CICC, and Credit Suisse are the sponsors on the offering.
Backed by Italian insurance giant Generali Group, SciClone develops and commercializes drugs that help treat severe and “specialized” diseases. Currently, Generali holds a 35% stake in SciClone but that will reduce to 29% following the listing.
One of its products Zadaxin that treats hepatitis B has been shown to be effective against Covid-19, as well as severe acute respiratory syndrome (SARS), which is another type of coronavirus, according to the company’s prospectus.
In fact, the National Administration of Traditional Chinese Medicine and China’s National Health Commission have Zadaxin listed as a potential treatment for Covid-19.
For the nine months ending September, Zadaxin accounted for around 84% of SciClone’s revenues that came in at 1.58 billion yuan ($243.5 million).
In addition, SciClone is already profitable, which is not common for many Chinese healthcare ahead of their Hong Kong listings. In the first three quarters in 2019 and 2020, SciClone has generated net profits of 487.2 million yuan 689.7 million yuan respectively.
Along with its commercialized treatments, SciClone has several products in its pipeline. According to the company, four candidates are in late-stage clinical testing, while three are in early-stages.
SciClone intends on using the proceeds from the IPO to invest or buy drugs in the Chinese and global markets and advance the development and commercialization of clinical-stage candidates.