CICC Assists Junshi Biosciences in Listing on STAR Market of SSE
Shanghai Junshi Biosciences Co., Ltd. (“Junshi” or “the Company”，1877.HK, 688180.SH) was successfully listed on STAR Market of SSE on July 15th, 2020. China International Capital Corporation (“CICC”) acted as the Sole Sponsor and Joint Underwriter. 87,130,000 shares were issued in this IPO, accounting for 10% of the enlarged share capital. The offering size is RMB 4.836 billion (the "issuance"). This transaction is the largest IPO of healthcare enterprises since the opening of SSE STAR Market, the largest IPO of pharmaceutical manufacturing enterprises since 2011, the largest A-share IPO by market value on the STAR Market applying the 5th set of listing standards, and the first “H+A share” Biotech Company under Chapter 18A of HKEx, which is a remarkable milestone.
Shares were actively traded on the first trading day with excellent performance. Junshi Biosciences’ share price closed at RMB151.00, representing an increase of 172.07% or RMB95.50 compared with the offering price of RMB55.50, with the market value of RMB 131.6 billion.
Junshi Biosciences was established in 2012. It’s an innovation-driven biopharmaceutical company dedicated to the discovery and development of innovative drugs and clinical research and commercialization on a global scale. Junshi Biosciences’ mission is to provide patients with treatment options that work better and cost less. Junshi Biosciences has distinguished capability of innovative drug discovery, advanced biotechnological R&D, large-scale production capacity on the full industry chain and rapidly expanding drug candidate portfolio of tremendous market potential.
With strong R & D capabilities and being forefront of medical innovation, the company has built a robust product pipeline with 21 products, covering immuno-oncology therapy, metabolic diseases, inflammatory or autoimmune diseases, neurologic diseases and antiviral treatment fields. Among them, JS001 is the first domestic anti PD-1 monoclonal antibody approved for market launch in China. From the end of February 2019 to the end of 2019, the sales volume reached RMB 774 million in less than one year. At the outbreak of COVID-19, Junshi Biosciences quickly launched the research and development of a neutralizing antibody drug JS016 against COVID-19 to fight the epidemic. JS016 has completed patient enrollment of phase I clinical trial in China in July this year, which is the first clinical-stage neutralizing antibody against COVID-19 in China. Through continued efforts in the development and commercialization of innovative drugs, the Company intends to become an innovative biotech company with global competitiveness harboring full industrial chain operations integrating R&D, manufacturing and commercialization.
In this transaction, CICC was solely responsible for the listing application of the company and approval and communication with regulatory agencies and actively participated in each work line to ensure the overall progress of the execution. With extensive cross-border experience and effective communication with CSRC, SSE, Shanghai Securities Regulatory Bureau, HKEx and NEEQ, CICC helped to promot the project approval progress, and assisted the company become the first Biotech Company under Chapter 18A of HKEx listing both on “H+ A share” and achieve another breakthrough in the capital market since the listing of H shares.
With in-depth coverage of the Company, CICC dived into the study of the Company's business model, fully tapped into its investment highlights and refined the equity story. CICC arranged multiple rounds of PDIEs and roadshows and fully demonstrate company value to investors, especially for core-investors and KOLs. Our star analysts also prepared high-quality and universally acclaimed report. Investors’ quotation is significantly better than the other recent IPOs, laying a solid foundation for the final pricing and successful issuance. After the company's Hong Kong stock price has recorded an increase of more than 110% during 2020, the final A-share pricing still achieves a reasonable premium over Hong Kong stocks.
CICC has established a long-term relationship with Junshi. In 2017, CICC became the sponsor of Junshi’s NEEQ project, assisting the enterprise to complete multiple rounds of issuance and convertible bond financing. In 2018, CICC, as the Sole Sponsor and the Leading Global Coordinator, helped Junshi to successfully list on HKEx Main Board. In this transaction, CICC, as the Sole Sponsor and Joint Underwriter, helped Junshi successfully complete listing on SSE STAR Market. The total scale of capital market services provided by CICC is nearly RMB 10 billion. The market value of Junshi has risen by nearly 30 times since CICC served it to the first day of listing on SSE STAR board, from RMB 5 billion to RMB 131.6 billion. With its rich experience in project execution and strong edge on comprehensive service, CICC continue to escort Junshi. It fully reflects CICC's all-round capital market service capability, absolute leading advantage and independent leading ability in the field of medicine and medical treatment.
As a leading investment bank with “China Roots, International Reach”, CICC will continue to utilize its capital market expertise as well as its seamless cooperation of onshore and offshore businesses to provide continuous support to our customers in terms of introduction of global investors, reaching international capital market, and promoting global business development.