PegBio, a Chinese biotech firm developing treatment for obesity, kicked off its bookbuilding for a Hong Kong listing on Monday, aiming to raise HK$300 million.
This came as Beijing ramps up efforts to tackle the country’s rising obesity rates by making weight loss a national priority.
PegBio specializes in developing innovative therapies for chronic diseases, with a focus on metabolic disorders. The company has developed one core drug candidate and five other pipeline products aimed at addressing diseases such as diabetes and obesity.
However, none of PegBio’s products have been approved for commercial sale yet, and the company has not generated any revenue from product sales. It posted a net loss of 283 million yuan (HK$306.9 million) last year, widening by 1.5 percent compared with the previous year.
The company plans to offer 19.28 million H-shares, with a minimum investment of HK$7,878.7 per board lot of 500 shares. It is slated to debut next Tuesday, with China International Capital Corporation (3908) acting as the sole sponsor.
China’s growing obesity crisis has drawn official attention, with the health ministry rolling out a series of initiatives during the annual Two Sessions, including calls for hotels to provide weighing scales.
The National Health Commission warns that over half of Chinese adults are currently overweight or obese, a figure projected to surpass 70 percent by 2030 if current trends persist.
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