IPO News | Baoji Pharmaceutical-B (02659) IPO is highly sought after: international placement received 6.59 times subscription and long-term capital firmly settled in

The Zhitong Finance App learned that on December 9, Baoji Pharmaceutical-B (02659) successfully completed an IPO of approximately HK$1 billion. The sale attracted widespread attention in the capital market, and the market response was particularly enthusiastic. Judging from the specific subscription data, the IPO international placement was 6.59 times subscribed, and the Hong Kong public sale received 3526.34 times the subscription, and market participation was intense. Baoji Pharmaceutical is expected to officially start trading on the Hong Kong Stock Exchange on December 10, 2025. Furthermore, Baoji Pharmaceutical's undercover trading showed a sharp rise. By the close, Futu Securities undercover trading showed a price of HK$56, up 112.28% from the offer price of HK$26.38.

The listing also introduced a number of well-known institutions as cornerstone investors, including Anke Biotech Hong Kong, DC Alpha SPC, and Guotai Junan Securities Investment. Cornerstone investors subscribed a total of HK$200.6 million, accounting for about 20.06% of the total capital raised. The introduction of long-term capital helps stabilize stock prices at the beginning of listing and grow together with the company.

Behind the high recognition in the capital market, it is supported by Baoji Pharmaceutical's clear business positioning and hard-core R&D strength. According to the prospectus, Baoji Pharmaceutical is a biotechnology company in the clinical and commercialization stages. It uses synthetic biotechnology to develop and provide recombinant biopharmaceuticals in China, focusing on overcoming target conditions with limited treatment options and complex drug manufacturing processes.

Through technologically differentiated products, Baoji Pharmaceutical has braved four independent and high-value treatment markets, including high-volume subcutaneous administration, antibody-mediated autoimmune diseases, assisted reproductive drugs, and transformational products to replace traditional biochemical products. Baoji Pharmaceutical has KJ017, the first recombinant human hyaluronidase reported in China, for high-volume subcutaneous administration; the world's first IgG degrading enzyme KJ103, which has the potential to be “best-in-class” in terms of low pre-stored antibodies and number of doses, for antibody-mediated autoimmune diseases; and SJ02, a long-acting follicle-stimulating hormone drug that has received cooperative verification, for assisted reproduction. These three core products have entered commercialization, new drug marketing application (NDA) registration, or advanced clinical stage in China, which indicates that Baoji Pharmaceutical is about to transition from pure R&D to commercialization.

Steady financial performance also provided strong support for this listing. Financial data showed that in 2023, 2024 and 2025 for the six months ending June 30, Baoji Pharmaceutical's revenue was 6.93 million yuan, 6.16 million yuan, and 41.99 million yuan respectively. The company's gross profit for the same period was 6.78 million yuan, 5.02 million yuan and 41.73 million yuan respectively, showing good profit potential. In terms of working capital, the company has sufficient cash reserves. In terms of cash flow, as of June 30, 2025, the company's cash and cash equivalents were 453 million yuan.

With this listing, Baoji Pharmaceutical plans to use the funds raised for the following purposes: (i) for the development and commercialization of core products (including KJ017, KJ103 and SJ02); (ii) to promote other existing pipeline products and prepare related registrations, including funding for clinical trials of KJ015, KJ101, SJ04, and antibiotic subcutaneous drug candidates (including BJ007, BJ008, and BJ009). (iii) Used for continuous optimization of proprietary synthetic biology technology platforms and research and development of new drug candidates; (iv) to enhance and expand production capacity; (v) for working capital and general corporate purposes.

The discovery of capital market value is an ongoing process. Baoji Pharmaceutical's steady revenue growth, reasonable valuation positioning, and market space for continuous expansion are expected to be transformed into tangible performance returns over time in the future.