Huaren Bio-B, 4.4-6 billion H-shares, is it the next Baoji or Yujian Xiaomian? Focused on protein drug development—(02396.HK) December 2025 IPO analysis
$B&K CORP-B(02396.HK) Huaren Bio-B(02396.HK)
Sponsors: Huatai Financial Holdings (Hong Kong) Limited CITIC Securities (Hong Kong) Limited
Offer Price: HK$38.20 - HK$51.00
Fundraising Amount: HK$674 million - HK$900 million
Total Market Cap: HK$4.495 billion - HK$6.001 billion
H-share Market Cap: HK$3.171 billion - HK$4.234 billion
Board Lot: 200 shares
Minimum Subscription: HK$10,302.88
Subscription Period: December 12, 2025 - December 17, 2025
Grey Market Trading: December 19, 2025
Listing Date: December 22, 2025 (Monday)
Total Offer Size: 17.6488 million H-shares
International Placement: 15.8838 million H-shares (~90.00%)
Public Offering: 1.765 million H-shares (~10.00%)
Allocation Mechanism: Mechanism B
Interest Calculation Days: 1 day
Stabilizing Agent: CLSA
Issue Ratio: 15.00%
P/E Ratio: -23.18
Company Profile
Established in 2012 and headquartered in China, Huaren Bio is a biopharmaceutical company focused on protein-based drug R&D, with core expertise in addressing medical needs and market opportunities in wound healing therapies, particularly platelet-derived growth factor (PDGF) drugs.
The company has built a diversified pipeline covering multiple indications with 10 candidate products. Its core product Pro-101-1 for deep partial-thickness and superficial partial-thickness burns has completed enrollment for the Phase IIb clinical trial and is awaiting final report confirmation; Pro-101-2 for diabetic foot ulcers is currently in Phase II clinical trials in China. Additionally, the company has 8 other PDGF candidate products (sharing the active ingredient rhPDGF-BB with the core product) targeting various wound healing indications including fresh wounds, pressure ulcers, and dry eye syndrome, along with 1 preclinical mRNA candidate and 2 preclinical ASO pipeline candidates.
Market-wise, while China remains its core target, the company plans to conduct Phase III trials for Pro-101-1 and Pro-101-2 in the US and Japan to expand overseas. It maintains strong IP protection with 25 granted patents and 29 pending applications as of the latest practicable date.
Financial Highlights (for the two years ended December 31, 2024, and the nine months ended September 30, 2024 and 2025):
Revenue: RMB472k, RMB261k, RMB0, RMB0
Gross Profit: RMB217k, RMB241k, RMB0, RMB0
R&D Expenses: -RMB39.915m, -RMB91.326m, -RMB69.763m, -RMB61.219m
Annual Losses: -RMB105m, -RMB212m, -RMB164m, -RMB135m
Source: Prospectus
As of September 30, 2025, the company had RMB74m in cash with operating cash flow of -RMB59m.
Source: Prospectus
II. Cornerstone Investors
None
15 Underwriters in total
Sponsor Track Record:
Huatai Financial Holdings (Hong Kong) Limited
CITIC Securities (Hong Kong) Limited
2. Subscription Rate & IPO Analysis
(From AIPO)
Current margin financing has been oversubscribed by 14.12x.
Group A margin financing requirements:
Group B requires HK$5.16m subscription, with margin requirements as below:
At the mid-point offer price of HK$44.60, total listing expenses amount to ~HK$78.3m (9.95% of the HK$787m raised), which is average for such offerings.
Should you subscribe? Here's our analysis:
Huaren Bio completed Pre-A, A, and B funding rounds pre-IPO, showing progressive growth in funding size, per-share cost, and valuation - reflecting sustained market confidence.
Pre-A round raised RMB5m; A round saw Qingdao Dinghui etc. invest RMB75m (14x growth); B round attracted RMB300m from Qingdao Gaoke (4x A round). Per-share costs rose from RMB9.20 (Pre-A) to RMB33.00 (B round), a 258.7% increase. Post-money valuation grew from RMB805m (Pre-A) to RMB3.3bn (B round), up 3x cumulatively.
This "larger funding, higher costs, rising valuation" pattern demonstrates value realization and institutional confidence ahead of its IPO.
At HK$4.495-6.001bn market cap (H-shares: HK$3.171-4.234bn) raising HK$674-900m via Mechanism B (18m shares), this will likely be oversubscribed. Current HK Connect threshold is ~HK$10bn (100-42=58 → 58/42=1.38x potential upside), but don't expect another Baoji Pharma (which rose 160% post-IPO - we still hold some bought at grey market lows, now +30%).
The HK$900m raise is modest versus peers, with clearer HK Connect potential. The HKEX is pushing year-end listings aggressively after becoming 2025's top global fundraising venue.
Key concern: HT as sponsor (historically problematic), though CLSA as stabilizer helps. If hot, focus on allocation chances - likely low for retail given B10 mechanism (small floats = scarce).
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