SHANGHAI / HONG KONG (Reuters) – Shenzhen Chipscreen Biosciences, which plans to list on China’s red-hot new tech, the board of directors, said that the newly issued shares that have been close to 3,000 times oversubscribed among retail investors, in spite of an eye-popping offer, the prices of the 468 times the profit.
As for the “scramble” is a reflection of strong interest for listings on the Shanghai a Nasdaq-style STAR in the Market, which was launched in June, it also highlights the challenge for the bankers, of the value of Initial public offerings for tech start-ups and regulators to leave the market, prices will play their part in determining prices.
Chipscreen (688321.SS), who developed the original drugs to tumors, and diabetes, it said in an exchange filing on Thursday that its shares will be reserved for the individual investor, accounting for around one-fifth of the world’s IPO was 2,956.The 25-times oversubscribed.
The company has set the price for its initial public offering (IPO) to 20.43 yuan per share, 467.51 time, 2018, with a profit, the highest so far for a STAR to Market a company.
In contrast, China’s listed pharmaceutical companies, trade at an average earnings multiple of 30.79 in the past month.
The feverish question of values, Chipscreen to 8.38 billion yuan ($1.21 billion), which would allow the company to increase from 1 billion yuan to 27% more than originally planned.
In a series of roadshow events on Tuesday, which is Chipscreen’s founder, Lu Xianping said, the company will use the proceeds of the IPO is to “strengthen competitiveness and expand the market share, as well as the development of new products in an effort to promote sustainable development.
Chipscreen’s share of the demand came a week after the blazing debut of the first batch of 25 enterprises in the field of science and technology, the board of directors on the 22nd of July. The companies that rose to about 140 percent on average for that day.
Chipscreen has announced the release of their debut, at the STAR Market, which has attracted a lot of Chinese drugmakers on the list. As a drug developer, a Master of the Zelgen Biopharmaceuticals Co., which is planning to list before, it does not sell any products to patients, it is possible to test investors ‘ risk tolerance.
The new tech council is in competition with Hong Kong, which, last year, a revised list of rules for the granting of the so-called ” pre-revenue or pre-profit biotechnology companies to go public in the city.
Under the rule, the 10 biotech companies to have floated in from Hong Kong as of May, raising more than HK$33 billion ($4 billion).
The shares of the Ascletis Pharma (1672.HK), the first biotech company in Hong Kong under the new arrangements, which are trading about 66% below its IPO price, while the performance of the rest of it combined.
($1 = 6.9004 Chinese yuan)
($1 = 7.8271 in Hong Kong dollars)
Reporting by Samuel Shen and Julie Zhu; Editing with the ipad, Himani