New stock news | (02659) IPO in high demand: International placement received 6.59 times oversubscription, long-term capital firm enters firmly

On December 9th, (02659) successfully completed a new stock offering of approximately HK$1 billion, which has attracted widespread attention in the capital market, with particularly enthusiastic market response. In terms of specific subscription data, the international allocation of IPO received 6.59 times oversubscription, while the public offering in Hong Kong received 3526.34 times oversubscription, indicating strong market participation. Baoji Pharmaceutical expects to officially commence trading on the Hong Kong Stock Exchange on December 10, 2025. In addition, the grey market trading of Baoji Pharmaceutical has shown a strong uptrend, with Futu Securities showing a price of HK$56 at the close, representing a 112.28% increase from the offer price of HK$26.38. The listing also introduced several well-known institutions including Anhui Anke Biotechnology Hong Kong, DC Alpha SPC, and Guotai Junan Securities Investment as cornerstone investors. The total subscription of cornerstone investors amounted to HK$200.6 million, accounting for approximately 20.06% of the total fundraising amount. The entry of long-term capital investment will help stabilize the stock price in the initial stage of listing and grow together with the company. Behind the high recognition in the capital market is Baoji Pharmaceutical's clear business positioning and robust research and development capabilities. The prospectus shows that Baoji Pharmaceutical is a biotechnology company in the clinical and commercialization stage, utilizing synthetic biotechnology to develop and provide recombinant biopharmaceuticals in China, focusing on tackling target diseases with limited treatment options and complex drug manufacturing processes. Baoji Pharmaceutical is breaking into four independent and high-value treatment markets with technologically differentiated products, including large volume subcutaneous drug delivery, antibody-mediated autoimmune diseases, assisted reproductive drugs, and revolutionary products in recombinant biopharmaceuticals replacing traditional biochem products. Baoji Pharmaceutical owns KJ017, China's first recombinant human hyaluronidase approved for large volume subcutaneous drug delivery; KJ103, the world's first IgG degrading enzyme with "best-in-class" potential in low pre-administration antibodies and dosing frequency, used for antibody-mediated autoimmune diseases; as well as SJ02, a long-acting follicle-stimulating hormone drug verified for cooperation, used for assisted reproduction. These three core products have entered commercialization, new drug application (NDA) registration, or late-stage clinical trials in China, indicating that Baoji Pharmaceutical is transitioning from the pure research phase to the commercialization phase. Solid financial performance also provides strong support for this listing. Financial data shows that for the six months ending June 30 in 2023, 2024, and 2025, Baoji Pharmaceutical's revenues were RMB 6.93 million, RMB 6.16 million, and RMB 41.99 million, respectively. The company's gross profits for the same period were RMB 6.78 million, RMB 5.02 million, and RMB 41.73 million, demonstrating good profit potential. In terms of working capital, the company has sufficient cash reserves, with cash and cash equivalents totaling RMB 453 million as of June 30, 2025. For this listing, Baoji Pharmaceutical plans to use the funds raised for the following purposes: (i) research and commercialization of core products (including KJ017, KJ103, and SJ02); (ii) advancement of other existing pipeline products and preparation of related registrations, including providing funds for clinical trials for KJ015, KJ101, SJ04, and candidate antibiotic subcutaneous preparations (including BJ007, BJ008, and BJ009); (iii) continuous optimization of proprietary synthetic biology technology platform and research and development of new candidate drugs; (iv) enhancement and expansion of production capacity; (v) for working capital and general corporate purposes. Value discovery in the capital market is a continuous process. Baoji Pharmaceutical's steady revenue growth, reasonable valuation positioning, and expanding market space are expected to tangible performance returns in the future through the passage of time.