IPO News | Biopharmaceutical company Hemei Pharmaceutical-B launches IPO, planned listing on November 9, with a minimum subscription lot size of HKD 1,909.06

Futu News, October 30: $HEMAY PHARMA-B (00054.HK)$ announced that the IPO subscription period will run from October 30 to November 4. The company plans a global offering of approximately 55.21 million shares and expects to list on November 9.

Company Overview

Hemei Pharmaceutical is a biopharmaceutical company dedicated to the discovery and development of self-developed small-molecule drugs for autoimmune diseases and oncology. It has established expertise in developing treatments and chemotherapies for Psoriasis (Ps), Bullous Diseases (BD), and Inflammatory Bowel Disease (IBD). As of the Latest Practicable Date, the company has developed a product pipeline comprising Mufemilast, a drug approved by the National Medical Products Administration (NMPA), and five other small-molecule candidate drugs, covering various indications with unmet medical needs.

The company operates two production facilities: the Xiajiang facility and the Ganzhou facility. The Xiajiang facility is responsible for process development and production of Active Pharmaceutical Ingredients (APIs) and key intermediates. As of April 30, 2026, this facility covers an area of over 46,000 square meters and employs 61 staff members. It is equipped with three production lines, with a designed annual production capacity for APIs and key intermediates of approximately 5.8 tons, of which about 1.4 tons per year had commenced production as of the Latest Practicable Date. The company's Ganzhou production facility specializes in the process development and manufacturing of pharmaceutical products.

Financial Overview

Hemay Pharmaceuticals recorded pre-tax losses of RMB123.4 million, RMB129.8 million, RMB51.8 million, and RMB32.4 million in 2024, 2025, and the four months ended April 30, 2025 and 2026, respectively. In 2024, 2025, and the four months ended April 30, 2025 and 2026, the Company’s R&D expenses amounted to RMB97.0 million, RMB90.3 million, RMB39.3 million, and RMB20.1 million, respectively.

Source: Prospectus

Use of Proceeds

Regarding the use of proceeds, Hemay Pharmaceuticals expects the net proceeds from the Global Offering to be approximately HK$879 million (assuming the Over-allotment Option is not exercised and based on the mid-point of the indicative offer price range of HK$17.3 per Offer Share). According to the prospectus, Hemay Pharmaceuticals intends to allocate the funds raised from the Global Offering to the following uses:

Approximately 55.5% will be used for the R&D and commercialization of the core product, Mufemilast; approximately 4.5% will be used to fund Phase III clinical trials in China; approximately 20% will be used to fund Phase Ib clinical trials in China, Phase II clinical trials in the United States, and Phase III clinical trials in the United States; approximately 10% will be used to fund Phase IIb clinical trials of Hemay808 in China, Phase I clinical trials of Hemay5087 in China, and Phase II clinical trials of Hemay5087 in China; and approximately 10% will be used for general corporate and working capital purposes.

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Edited by Joe

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