Biopharma Firm Sunshine Guojian Seeks to Raise $248 Million in STAR Market IPO

(Deal Street Asia) — Biopharmaceuticals firm Sunshine Guojian Pharmaceutical (Shanghai) Co. Ltd. has kicked off the subscription exercise for its IPO, targeting to raise 1.7 billion yuan ($248 million) on the Nasdaq-style STAR Market of the Shanghai Stock Exchange (SSE), according to a company filing.

The China International Capital Corp. Ltd.-backed company intends to offer up to 61.62 million common shares at a price of 28.18 yuan apiece.

The proceeds will be deployed for research and development of new drugs targeting oncology, autoimmunity and ophthalmic conditions.

Huatai United Securities is the principal underwriter, while Huatai and Citic Securities are the joint sponsors for the deal. Guojian will float the shares under the symbol “688336.”

Guojian, a subsidiary of Hong Kong-listed 3SBio Group, has developed two listed drugs and a strong pipeline.

The company booked annual revenues of 1.1 billion yuan, 1.14 billion yuan and. 1.17 billion yuan for the past three years.

After the IPO, Hong Kong-based Full Gain Pharmaceutical will remain the controlling shareholder in Guojian with 35.95% stake. 3SBio (Shenyang) will have a 6.43% stake.

Chinese cross-border investment bank China International Capital Corp/ along with Citic Private Equity Funds Management had collectively infused $7.9 million in Guojian’s Series A round in 2010.

Contact editor Yang Ge (geyang@caixin.com)