Pharma kicks off $1.1b IPO

QuantumPharm opens its retail books today as it bids to raise up to HK$1.13 billion in an initial public offering in Hong Kong.

It is the first specialist technology firm to go public under the city's new 18C rule for pre-commercial tech firms.

The Shenzhen-based firm plans to issue 187 million shares with 178 million for international tranche and 9.37 million in Hong Kong's retail tranche. The prices range between HK$5.03 and HK$6.03 per share.

Also known as XtalPi, the company provides drug and material science research and development solutions and services which are based on quantum physics and powered by artificial intelligence.

The proceeds raised from the IPO will be used to enhance its capability in research and development, commercialization and for working capital.

QuantumPharm net loss widened by 32 percent year-on-year to 1.9 billion yuan (HK$2.05 billion) last year, while its revenue grew 31 percent to 174 million yuan only over the same period.

QuantumPharm is expected to debut on June 13.

Only two firms have applied for IPOs through 18C after the city lowered the revenue threshold for specialist technology firms last March.

Meanwhile, UBoT Holding (8529), the first listing after the GEM board reform, closed at HK$0.53 apiece on its debut yesterday, 6 percent higher than the offer price of HK$0.5. Shareholders are estimated to receive a paper gain of HK$800 per broad lot.