Drugmaker GenFleet Therapeutics over 870 times oversubscribed during IPO

Chinese biopharmaceutical company GenFleet Therapeutics (Shanghai) has pulled in margin loans of HK$138.5 billion, making its retail tranche 875.6 times oversubscribed as of Monday.

The drugmaker plans to offer 77.6 million shares, with an offer price of HK$20.39 per share, aiming to raise HK$1.58 billion.

Each board lot consists of 200 shares, requiring a minimum investment of HK$4119.10.

The bookbuilding period will end at noon on Tuesday, and the firm will be listed on Friday.

No clawback mechanism is offered, and the company allows retail investors to subscribe up to 15 percent of the shares sold in the initial public offering. 

Last year, the company's net loss expanded 33.3 percent yearly to HK$677.6 million, while its revenue rose 42 percent to HK$104.7 million.

According to an exchange filing, GenFleet Therapeutics focuses on developing novel treatment options in the fields of oncology, covering different lines of treatments of multiple solid tumors, as well as autoimmune and inflammatory diseases.

The firm said it had established a product pipeline consisting of eight product candidates with five under clinical development.

The drugmaker will allocate 71 percent and 19 percent of the net proceeds to fund further development of its two core products and other product candidates, respectively, while 10 percent will be used for working capital and other general corporate purposes.

Citic Securities (6030) is the sole sponsor.

HELEN ZHONG