China’s Kintor Pharmaceutical Launches $240 Million IPO in Hong Kong
What’s new: Chinese biotech company Kintor Pharmaceutical Ltd. launched an initial public offering (IPO) in Hong Kong Tuesday to raise as much as HK$1.86 billion ($240 million), the latest in a stream of healthcare IPOs in the city.
The Jiangsu-based cancer drug developer plans to issue 92.35 million shares at an offering price between HK$17.80 and HK$20.15 apiece, according to its prospectus. The shares will be priced Friday and are scheduled to debut May 22.
The company invited three cornerstone investors, including an investment arm of state-controlled appliance maker Gree Group, to subscribe for more than half of the shares. Gree will invest $98 million for about 40% of Kintor’s shares.
The background: Kintor mainly develops drugs for prostate cancer and other androgen receptor-related diseases. Its lead drug, proxalutamide, is a drug to treat prostate cancer and breast cancer now in Phase III trials in China and Phase II in the U.S.
The company said it plans to use 42% of the IPO proceeds for clinical trials of proxalutamide, 28% to develop and commercial a hair-loss drug, 20% for other clinical studies and 10% for general operations.
The company has yet to make a profit. In 2019, Kintor had a loss of 233 million yuan.
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