Press Release
FCIB Acted as the Sole Sponsor and Sole Underwriter for Chongqing Pharscin Pharmaceutical Co., Ltd.
Chongqing Pharscin Pharmaceutical Co., Ltd. (002907.SZ) successfully completed the subscription session for its Initial Public Offering of 40.06 million shares on October 11th, 2017, and the newly-issued shares have been listed on the SME Board of Shenzhen Stock Exchange since October 20th, 2017. FCIB acted as the sole sponsor and sole underwriter for the deal, which is also FCIB’s first A share IPO in pharmaceuticals industry. The issuing price was set at RMB 4.53 per share, corresponding to 22.96x post-IPO P/E ratio, and 40.06 million new shares, accounting for 10.01% of total shares post the IPO, were issued to raise approximately RMB 0.18 billion. Pharscin Pharmaceutical was highly popular amongst both institutional and retail investors. After the launch of claw-back mechanism, 4.006 million shares, or 10% of the new shares, were issued offline, while 36.054 million shares or 90% of the new shares, were issued online.
Pharscin Pharmaceutical is devoted to the research and development, production and sales of drugs. Pharscin Pharmaceutical’s main products, such as Hydrotalcite Tablets, Duliang Ruanjiaonang, Ganjie Bingmeipian have a high market share in targeted areas in domestic market. Chongqing Pharscin Pharmaceutical Co., Ltd. has been judged as Key High-tech Enterprises of China Torch Program, the High Technology Enterprise, Leading Enterprises of National Biological Industry.
CSRC has speeded up IPO approval process since the year 2016. FCIB’s management and the deal team continued to closely follow the policy and market changes and successfully completed the application process in a short term with high quality. FCIB filed Pharscin Pharmaceutical IPO application in July, 2016, and the issuer passed the CSRC Issuance Examination Commission’s review 14 months later in early September, 2017. The client and regulatory authorities highly commended us for the speed and quality of those filing documents. The success of this deal earned a favorable reputation for FCIB in the capital markets.
On September 22th, 2017, Pharscin Pharmaceutical obtained the final CSRC approval and officially kicked off the issuance. During the preparation and issuance process, our ECM team communicated with CSRC and Shenzhen Stock Exchange thoroughly and effectively, which was critical to the smooth and effective execution of this IPO, which helped us to obtain unanimous recognition from the issuer. The IPO was popular among both institutional and retail investors.
