China-based cancer and metabolic disorder drug developer Hinova Pharmaceuticals floated on Tuesday in an initial public offering sized at approximately RMB1.06bn ($166m), enabling corporates Tigermed, Fosun, Haisco and Sinopharm to exit, DealStreetAsia reported.
The company issued nearly 24.8 million shares on Shanghai Stock Exchange’s Star Market, priced at RMB42.90 each, with Citic Securities lead underwriter for the offering.
Hinova is working on therapeutics intended to treat cancer and metabolic diseases through targeted protein degradation. It initiated a phase 1 clinical trial for a metastatic castration-resistant prostate cancer drug candidate dubbed HP518 in January this year.
The IPO takings have been earmarked for drug development and the building of a research and development centre, new head office and a manufacturing facility, with some $157m set to go to construction of the head office in the city of Chengdu.
The company closed a $147m series C round in late 2020 featuring clinical research organisation Tigermed and Sinopharm-CICC, a joint venture for pharmaceutical firm Sinopharm and investment bank China International Capital Corporation’s CICC Capital unit.
Financial services firm China Construction Bank’s CCB International subsidiary, brokerage firm Sealand Securities’ Sealand Innovation fund, Founder Securities vehicle Founder H Fund, Shenzhen Investment Holdings, Huarong Rongde Asset Management, Infinity Group and DNV Capital also took part in the round.
PE GF Xinde Investment was one of six investors that provided $32m in series B funding for Hinova early the same year, following a $40m series B round in 2019 co-led by Fosun Pharmaceutical, a subsidiary of conglomerate Fosun, and Hermed Capital.
Lang Sheng Investment, Prosper Capital, Silicon Valley Torch Fund, Chengdu Dingjian New Material Partnership and Hengxing Capital filled out the series B investors. Pharmaceutical company Haisco and Chengdu Hi-tech Investment’s Winpower unit had previously invested undisclosed amounts in the company.
