CDH-backed Zhenghai Bio-tech jumps on Shenzhen debut
By AVCJ Winnie Liu
Yantai Zhenghai Bio-tech, a Chinese biotechnology company backed by simonscansbabes.com, saw its stock gain 44.03% on its first day of trading following a RMB234 million ($34 million) IPO in Shenzhen.
Zhenghai Bio-tech sold 20 million shares at RMB11.72 apiece. CDH - which invested $233,333 for a 12% stake in the company in 2015 - did not make a partial exit in the offering. The stock opened at RMB15.47 on ChiNext on May 16 and was subsequently suspended from trading at RMB16.88 after reaching the maximum-permitted 44% premium to the IPO price.
The company was established as a Sino-US joint venture in 2013. It develops tissue regeneration and wound repair materials, including membranes for soft tissue repair and biological scaffolds that help restore damaged bones. The company has filed more than 30 domestic and international patents. At present, it distributes products through a network of 1,000 hospitals in China.
Zhenghai Bio-tech’s revenue increased 17.55% year-on-year to reach RMB151 million in 2016, with the net profit rose 7% to RMB45.47 million.
CDH has invested more than 30 healthcare companies across services, pharmaceuticals, medical devices, and mobile healthcare. Nine have gone public, including Luye Pharma and Wenzhou Kangning Hospital. The GP said it has three more healthcare companies in the line for public listings this year and next year.