Jointown International Group Company Limited (600998.SH) announced on November 20th that the company plans to globally issue 45.3988 million H shares, with 4.54 million shares sold in Hong Kong and 40.8588 million shares sold internationally; the IPO will take place from November 20th to November 25th, 2024, with the expected pricing date on November 26th; the offering price will be HK$11.48-12.56 per share, with a trading unit of 200 shares; Huatai International is the sole sponsor; the expected trading of shares on the Hong Kong Stock Exchange will begin on November 28th, 2024.

Established in 1993, the company is a China-based bio-pharmaceutical company headquartered in Zhejiang Province, with over 30 years of experience in the research, development, production, and commercialization of biopharmaceuticals and medical instruments. The company focuses on four rapidly growing therapeutic areas: orthopedics, metabolic diseases, oncology, and hematology. According to Zhushi Consulting, the combined sales from these four areas accounted for 51.5% of China's total pharmaceutical sales in 2023, significantly outperforming the overall performance of China's pharmaceutical industry from 2018 to 2023. It is anticipated that this trend will continue in the near future. As of the latest feasible date, the company has established a diversified product portfolio in these therapeutic areas, including eight marketed products (including China's first recombinant human bone morphogenetic protein-2 ("rhBMP-2") bone repair material BoneOss) and over 10 pipeline products (including China's first IND-approved and NDA-submitted semaglutide biosimilar JY29-2). The company's first strategic step is to identify treatment targets with market potential in the chosen areas of focus. Upon identifying the targets, the company will leverage its mature R&D platform, production capacity, sales, and distribution networks to develop innovative and first-to-market generic products in China.

The company has entered into cornerstone investment agreements, under which the cornerstone investors have agreed, subject to certain conditions and restrictions, to subscribe at the offering price or induce designated entities (including qualified domestic institutions) to subscribe (as the case may be) for an aggregate amount of approximately HK$0.35 billion worth of shares. Assuming the offering price is HK$12.02, the mid-price range as described in the prospectus, the total number of shares subscribed by the cornerstone investors will be 29.1174 million shares, representing approximately 64.14% of the shares offered globally and approximately 11.87% of the total issued share capital of the company immediately following the completion of the global offering (assuming no exercise of the over-allotment option).

The cornerstone investors include Hua Da Jingyuan (Hong Kong) Co., Ltd. ("Hua Da Hong Kong"), Fosun Industrial (Hong Kong) Co., Ltd. ("Fosun Industrial", a wholly-owned subsidiary of Fosun Pharma (600196.SH/2196.HK)), Hong Kong Healthmate Industrial Co., Ltd. ("Hong Kong Healthmate", fully owned by Nanjing Healthmate (603707.SH)), Ali Health Hong Kong (indirectly owned by Ali Health (0241.HK)), Jointown International Group Company Limited ("Jointown International", a wholly-owned subsidiary of Jointown Pharmaceutical Group (600998.SH)), Mr. Wu Qiyuan (founder of Juntu Hotel (301073.SZ)), and Delta Capital Hong Kong Limited ("Delta Capital HK").

Assuming an offering price of HK$12.02 per share (the mid-price range as described in the prospectus) and assuming no exercise of the over-allotment option, the company estimates that the net proceeds of the global offering will be approximately HK$0.468 billion. Currently, the company plans to allocate approximately 40.0% of the net proceeds from the global offering to the continued research and development of selected pipeline products in strategic therapeutic areas; approximately 30.0% will be used for the marketing and commercialization of existing and near-commercial products; approximately 10.0% will be allocated to seeking strategic partnerships to enrich the company's product portfolio in its target therapeutic areas; approximately 10.0% will be used for the company's manufacturing systems to construct new production lines and upgrade and further automate the company's existing production facilities to prepare for potential demand growth of company products and the launch of new products; and the remaining approximately 10.0% of the net proceeds will be used for the company's working capital and other general corporate purposes.