LONGBIO-B prices HK IPO at HKD96.06, to raise HKD1.26 billion

Clinical-stage biopharmaceutical company LONGBIO-B (01779.HK) launched its Hong Kong IPO at HKD96.06 per share, targeting net proceeds of HKD1.255 billion.

"The IPO attracted strong cornerstone interest from global healthcare investors," the company said in its prospectus filing.

The company is offering 14.19 million H shares, with 10 percent allocated to the Hong Kong public offering and 90 percent to the international tranche. Each board lot of 50 shares requires an entry fee of HKD4,851.44. The subscription period runs from May 28 to noon on June 2.

Nine cornerstone investors, including OrbiMed Funds, TruMed Funds, GBAHIL and FR M, have collectively subscribed for USD87 million worth of shares. The pricing gives the company an enterprise value that will be tested when trading begins on the Main Board on June 5. Sinolink Securities (Hong Kong) is the sole sponsor.

The company did not disclose the oversubscription ratio or use of proceeds breakdown. The greenshoe option and lockup periods for cornerstone investors were also not yet detailed in the offering documents.

LONGBIO-B is a clinical-stage biopharmaceutical company, and its listing will provide a benchmark for valuation in the Hong Kong biotech sector. The HKD1.255 billion in net proceeds positions the company to fund its pipeline development.

The pricing gives LONGBIO-B a market valuation that will be tested against comparable biotech peers on its first trading day. Investors will watch the June 5 debut for signals of institutional demand for clinical-stage healthcare names in Hong Kong.

This article is for informational purposes only and does not constitute investment advice.