New stock news | Haisi Pharma (02637) completes its initial public offering with a total subscription amount of HK$3.094 billion, oversubscribed by 3113 times.

Haixi New Medicine (02637) conducted its IPO from October 9th to 14th noon and has now ended the subscription. By October 14th noon, Haixi New Medicine has obtained a total of 30.94 billion Hong Kong dollars in margin financing from brokers, based on the initial fundraising amount of 99.36 million Hong Kong dollars for public offering, resulting in an oversubscription of 3113 times. According to information, Haixi New Medicine plans to issue 11.5 million H shares, with 10% offered to the public in Hong Kong. The offering price ranges from 69.88 Hong Kong dollars to 86.4 Hong Kong dollars, aiming to raise a maximum of 0.99 billion Hong Kong dollars, with 50 shares per lot and an entry fee of 4363.6 Hong Kong dollars. The company is expected to be listed for trading on October 17th, with Huatai International and CMB International as its joint sponsors. According to the prospectus, Haixi New Medicine is a commercial-stage pharmaceutical company that integrates research and development, production, and sales capabilities, with a pipeline of innovative drugs in development. Its commercialized product portfolio primarily includes generic drugs for digestive system diseases, cardiovascular diseases, endocrine system diseases, nervous system diseases, and inflammatory diseases. The company has also established a pipeline of 4 innovative drugs in development. Currently, the company has received approval from the National Medical Products Administration for 15 generic drugs, with four of them being included in the National Volume-based Procurement (VBP) program, including: Anbil Haifeitong Ruian tuo, and Saixifu. The company's innovative drug pipeline focuses on drugs in development for various indications, including an innovative drug for tumors, a potential oral drug for the treatment of wet age-related macular degeneration (wAMD),diabetic macular edema (DME), and retinal vein occlusion (RVO), as well as two other innovative drugs in pre-clinical stage for the treatment of tumors and respiratory system diseases. The fastest progressing drug in the pipeline is C019199 for osteosarcoma, which began Phase III trials in the second half of this year. In 2022, 2023, 2024, and the five months ending May 31, 2025, the company's revenue is expected to be 212.5 million, 316.6 million, 466.7 million, and 249.2 million RMB, respectively, with gross profit of 172.1 million, 263.6 million, 387.2 million, and 209.3 million RMB, respectively. Additionally, the company has entered into cornerstone investment agreements with cornerstone investors (Harvest Oriental). According to the agreement, the cornerstone investors have agreed to subscribe or purchase a total of approximately 22 million US dollars worth of shares at the offer price, subject to certain conditions and restrictions. Approximately 52% of the proceeds from the fundraising will be used for continued investment in research and development to advance drugs in the pipeline and expand the product portfolio; 23% will be used to enhance research and development capabilities and seek partnership opportunities; 8% will be used to strengthen commercialization capabilities and expand market influence; 7% will be used to improve and optimize research and production systems; and 10% will be used for operating capital and other general corporate purposes.