IPO Pricing | Clover Biotech received 4.4x subscription, priced at HK$13.38 per share

Futu News, November 4, this Thursday$CLOVER BIO-B (02197.HK)$An announcement was issued. The company will issue 150 million shares, priced at HK$13.38 per share, and 500 shares per lot. It is expected to be listed on November 5.

During the public sale phase, Clover Bio-B was subscribed about 4.4 times, and the final number of shares offered for public sale was 15 million shares, accounting for about 10% of the total number of shares offered (before any over-allotment rights were exercised). A total of 17,687 valid applications were received. The first-hand winning rate was 35%, and the first-hand subscription was stable.

Furthermore, the international offering was oversubscribed, and the final number of shares offered was approximately 135 million shares, equivalent to about 90% of the total number of shares offered (before any over-allotment rights were exercised). Futu Information collates relevant data in the following table:

In terms of financing, the company's net proceeds of approximately $1.87 billion (assuming that the over-allotment rights are not exercised) will be used for the following purposes: approximately 65% will be used for R&D, production and commercialization of core products and related products; approximately 22.5% will be used for R&D, production and commercialization of other products (such as SCB-313 and SCB-420) and other potential candidate products; and approximately 12.5% will be used for working capital and other general corporate purposes.

Established in 2007, Clover Biotech is a global biotechnology company in clinical trials dedicated to developing novel vaccines and biotherapeutic candidates for infectious diseases, cancer, and autoimmune diseases. Its main products are indicated for various treatment fields such as COVID-19, malignant ascites, and ankylosing spondylitis.

At the same time, the company is a COVID-19 vaccine development company and has created SCB-2019 (CpG 1018 aluminum adjuvant) (one of the core products) to deal with the COVID-19 outbreak caused by SARS-CoV-2. According to the prospectus,The company is expected to be one of the first companies worldwide to commercialize the recombinant protein COVID-19 vaccine through the COVAX mechanism.

As of the last practical date, the company's product pipeline includes six Trimer-TagTM subunit vaccine candidates, two Trimer-TagTM tumor treatment candidates, and three Fc fusion protein candidates, covering 13 indications.

It is worth noting that before the IPO,The company has received investment from many well-known institutions, including Goldman, Temasek, Longpan Investment, Delos Capital, Qianhai Fund, Beixin Investment and OrbiMed.

In terms of financial data,The company currently has no approved products for commercial sale, so it has not generated any product sales revenue.In 2019 and 2020, the company recorded revenue of RMB 16.980,000 and RMB 24.310,000 respectively; net losses of RMB 485.83 million and RMB 913 million were recorded during the same period; in the first four months of 2021, the company received revenue of RMB 5.491 million and net loss of RMB 909 million.

On the industry side, according to Frost & Sullivan, as of the last practical date, around 6 billion doses of the COVID-19 vaccine have been administered worldwide. In terms of sales volume in 2020, the global COVID-19 vaccine market reached US$600 million. As a result, the global demand for an effective and safe COVID-19 vaccine needs to be met urgently.

Assuming that the vaccine plan is two doses and takes into account global government procurement and reserves, the amount of COVID-19 vaccine needed globally will reach about 15 billion doses by 2026. Additionally, regular booster vaccinations or revaccinations may be required, especially as new variants emerge, leading to huge global demand for COVID-19 vaccines over the next few years.

As of the last practical date, a total of 21 COVID-19 vaccines have been marketed globally and 30 vaccine candidates are in phase II/III or later.

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