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在线翻译:
szdaily -> Business/Markets -> 
Shenzhen firm’s IPO sees feverish demand
    2019-08-02  08:53    Shenzhen Daily

SHENZHEN Chipscreen Biosciences, which plans to list on China’s red-hot new tech board, said its newly issued shares were almost 3,000-times oversubscribed among retail investors, despite an eye-popping offer pricing of 468-times earnings.

While the scramble reflects a strong appetite for listings on Shanghai’s Nasdaq-style STAR Market, which was launched in June, it also underlines the challenge for bankers to value IPOs for tech startups as regulators let market prices play their role in setting prices.

Chipscreen, which develops original drugs for tumors and diabetes, said in an exchange filing Thursday that shares reserved for individual investors, accounting for about one fifth of the IPO, were 2,956.25 times oversubscribed.

The company has set the price for its initial public offering (IPO) at 20.43 yuan per share, or 467.51 times 2018 earnings, the highest so far for a STAR Market company.

In contrast, China-listed pharmaceutical firms, traded at an average earnings multiple of 30.79 over the past month.

The feverish demand values Chipscreen at 8.38 billion yuan (US$1.21 billion), and would allow the company to raise 1 billion yuan, 27 percent more than originally planned.

In a roadshow Tuesday, Chipscreen founder Lu Xianping said the company will use the IPO proceeds to “strengthen competitiveness, expand market share, and develop new products in a bid to make growth sustainable.”

Chipscreen’s share offering came a week after the frenzied debut of the first batch of 25 companies on the science and technology board July 22. The companies surged roughly 140 percent on average on that day.

Chipscreen has not disclosed when it will debut on the STAR Market, which has attracted a slew of drugmakers to list. One drug developer, Suzhou Zelgen Biopharmaceuticals Co., plans to list before it sells any products to patients. (SD-Agencies)

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