The AI-enabled drug development company Insilico Medicine starts its IPO today, with Eli Lilly, Tencent, Temasek, and others as cornerstone investors

AI-driven drug discovery and development company Insilico Medicine (03696.HK) announced its IPO details in Hong Kong, with a global offering of 94.6905 million shares. The Hong Kong public offering accounts for 10% (9.4695 million shares), while the international placement accounts for 90% (85.221 million shares). The offer price is set at HKD 24.05 per share, with expected fundraising of up to approximately HKD 2.277 billion. The minimum trading unit is 500 shares, with an entry fee of approximately HKD 12,146.27. The subscription period runs from today (the 18th) until next Tuesday (the 23rd), with listing expected on the 30th of this month, with Morgan Stanley, China International Capital Corporation, and GF Securities serving as joint sponsors.

Based on the offer price of HKD 24.05, the net proceeds from the fundraising are approximately HKD 2.026 billion, of which about 48% will be used for clinical research and development of pipeline candidate drugs in key clinical stages, about 15% for developing new generative AI models, about 12% for developing and expanding automated laboratories, about 20% for early drug discovery and development, and the remaining 5% for working capital and other general corporate purposes.

Insilico Medicine has introduced several well-known companies and institutions as cornerstone investors in this IPO, including Eli Lilly (LLY.US), Tencent (00700.HK), Oak Tree Capital Management, Schroders, Singapore's Temasek, UBS Asset Management (Singapore), Huaxia Fund, China Pacific Insurance (02601.HK), E Fund Management, under the banner of Franklin Templeton, and others, which will collectively subscribe for approximately USD 115 million worth of shares, involving about 37.2045 million shares at the offer price of HKD 24.05, accounting for approximately 39.29% of the shares offered