Rate Of Return
Buffett Apprentice[HK IPO Subscription] Insilico + Meilian Shares + Xunce Subscription Strategy
1. Insilico Medicine
Insilico Medicine was founded in 2014 as a globally recognized AI-driven drug discovery and development company. As of the latest practicable date, we have generated over 20 clinical or IND-stage assets through our proprietary generative AI platform Pharma.AI, three of which have been licensed to international pharmaceutical and healthcare companies with a total contract value of up to $2.1 billion, including up to $110 million in upfront payments and up to $1.9 billion in milestone payments, as well as a Phase II asset in self-development stage, which is relatively advanced in the industry.
The company started its IPO subscription on December 18, with an offer price of HK$24.05, 500 shares per lot, minimum subscription of HK$12,146.27, market cap of HK$13.406 billion, and 94.6905 million shares issued, belonging to the biotech industry, with a greenshoe option.
The sponsors are Morgan Stanley, CICC, and GF Hong Kong. The first-day rise rate of projects sponsored by Morgan Stanley in the past two years is 69.23%, CICC's is 60%, and GF Hong Kong's is 80%. The overall performance of the sponsors is not bad. There are a total of 9 cornerstone investors, including Eli Lilly, Tencent, Temasek, Schroders, UBS Asset Management, Oaktree Capital, Huaxia Fund, China Taiping, E Fund, Fullgoal, Harvest Fund, Taikang Life, RTW, Exome, and Infini. The cornerstone investors subscribed a total of $115 million, accounting for 39.29% of the total issuance, with a strong lineup and not a low proportion. The company's revenue from 2022 to 2024 was RMB 30.147 million, 51.18 million, and 85.834 million, respectively, with a year-on-year growth of 67.71% in 2024. The net profit from 2022 to 2024 was -RMB 222 million, -212 million, and -17.096 million, respectively, with a year-on-year narrowing of losses by 91.92% in 2024. Based on the issue price, the market cap is HK$13.406 billion, issuing HK$2.277 billion, with an issuance ratio of 16.98%. The cornerstone lock-up is 39.29%, so the free float is HK$1.382 billion. This issuance adopts the new Hong Kong IPO mechanism B, with an initial public offering share of 10% and no clawback mechanism. The current subscription multiple is 121.87 times, and the subscription popularity is already considered hot, mainly because of the recent conflicts with multiple new stock funds. It is expected that the final subscription popularity will be better.Subscription Strategy: Insilico Medicine is an AI-driven drug discovery and development company and a global leader in AI pharmaceuticals. The sponsors are Morgan Stanley, CICC, and GF Hong Kong, and the overall performance of the sponsors is not bad. The 9 cornerstone investors subscribed a total of $115 million, accounting for 39.29% of the total issuance, with a strong lineup and not a low proportion. The company is still in a loss-making stage, but the losses are narrowing. This issuance adopts the new Hong Kong IPO mechanism B, with an initial public offering share of 10%, and the free float is HK$1.382 billion. The current subscription multiple is 121.87 times, and the subscription popularity is hot. Generally, companies invested by Tencent are industry leaders and perform well. I plan to participate heavily!
2. Meilian Shares Meilian Shares is a comprehensive prefabricated steel structure building subcontractor in the industrial sector of the prefabricated steel structure building market. According to the Frost & Sullivan report, based on 2024 revenue, we ranked third in the industrial sector of China's prefabricated steel structure building market, with a market share of 3.5%; the market shares of the top two participants were 35.8% and 6.5%, respectively. The company started its IPO subscription on December 18, with an offer price of HK$7.1~9.16, 500 shares per lot, minimum subscription of HK$2,775.71, market cap of HK$856 million~1.104 billion, and 24.6 million shares issued, belonging to the building construction industry, with a greenshoe option. The sponsor is Shenwan Hongyuan. Shenwan Hongyuan has not sponsored many projects in the past two years, with a first-day rise rate of 75%. The overall performance of the sponsor is not bad. There are a total of 4 cornerstone investors, including Caiyun Holdings Limited, Tiny Jade, Wu Xinghua, and Logic Selective. The cornerstone investors subscribed a total of HK$51.5 million, accounting for 25.75% of the total issuance, with a not high proportion. The company's revenue from 2022 to 2024 was RMB 1.903 billion, 1.453 billion, and 1.523 billion, respectively, with a year-on-year growth of 4.81% in 2024. The net profit from 2022 to 2024 was RMB 87.706 million, 62.132 million, and 70.783 million, respectively, with a year-on-year growth of 13.92% in 2024. In the first half of 2025, revenue was RMB 1.424 billion, a year-on-year increase of 179.51%, and net profit was RMB 62.629 million, a year-on-year increase of 360.2%. The company's performance in the first half of 2025 grew significantly. Based on the median issue price, the market cap is HK$980 million, issuing HK$200 million, with an issuance ratio of 20.41%. The cornerstone lock-up is 25.75%, so the free float is HK$149 million, which is very small. This issuance adopts the new Hong Kong IPO mechanism B, with an initial public offering share of 10% and no clawback mechanism. The current subscription multiple is 18.36 times, and the subscription popularity is also not bad, mainly because of the recent conflicts with multiple new stock funds. It is expected that the final subscription popularity will be better.Subscription Strategy: Meilian Shares is a subcontractor in the prefabricated steel structure building market, ranking third in the industry. The sponsor is Shenwan Hongyuan, which has not sponsored many projects in the past two years, but the overall performance is not bad. The 4 cornerstone investors subscribed a total of HK$51.5 million, accounting for 25.75% of the total issuance, with a not high proportion. It's not bad for such a small-cap stock to have cornerstone investors. The company's net profit in the first half of 2025 was RMB 62.629 million, a year-on-year increase of 360.2%, with significant performance growth. This issuance adopts mechanism B, with an initial public offering share of 10%, and the free float is HK$149 million, which is very small. The current subscription multiple is 18.36 times, and the subscription popularity is also not bad. This stock has very few shares and should rise sharply, with the potential to be a meme stock. I plan to participate!
3. Xunce Xunce is a real-time data infrastructure and analytics solution provider in China. We provide real-time IT solutions covering data infrastructure and data analysis for enterprises across industries. Our system integration services facilitate seamless deployment in customer-owned environments, including self-managed cloud and on-premises systems. The company started its IPO subscription on December 18, with an offer price of HK$48~55, 500 shares per lot, minimum subscription of HK$5,555.47, market cap of HK$15.48 billion~17.738 billion, and 22.5 million shares issued, belonging to the digital solutions services industry, with a greenshoe option. The sponsor is Guotai Junan. The first-day rise rate of projects sponsored by Guotai Junan in the past two years is 77.77%. The overall performance of the sponsor is not bad. There are a total of 9 cornerstone investors, including China Vision, Alphahill Fund, Fucheng Holdings, Wuji Capital, Qiangwei Hong Kong, Yunfeng Fund, Cithara Fund, FMF, and Joy Mobile. The cornerstone investors subscribed a total of $39.57 million, accounting for 26.56% of the total issuance, with a not high proportion. The company's revenue from 2022 to 2024 was RMB 288 million, 530 million, and 632 million, respectively, with a year-on-year growth of 19.14% in 2024. The net profit from 2022 to 2024 was -RMB 96.512 million, -63.391 million, and -97.845 million, respectively, with a year-on-year growth of -54.35% in 2024. Based on the median issue price, the market cap is HK$16.609 billion, issuing HK$1.159 billion, with an issuance ratio of 6.98%. The cornerstone lock-up is 26.56%, so the free float is HK$851 million. This issuance adopts the new Hong Kong IPO mechanism B, with an initial public offering share of 10% and no clawback mechanism. The current subscription multiple is 2.74 times, and the subscription popularity is poor.Subscription Strategy: Xunce is a real-time data infrastructure and analytics solution provider in China, ranking fourth in the industry. The sponsor is Guotai Junan, and the overall performance of the sponsor is not bad. The 9 cornerstone investors subscribed a total of $39.57 million, accounting for 26.56% of the total issuance, with a not high proportion. The company's revenue has been growing every year, but it is still in a loss-making stage. This issuance adopts mechanism B, with an initial public offering share of 10%, and the free float is HK$851 million. The subscription popularity is also relatively poor. This stock needs to be approached with caution. There are many new stocks now, so I plan to give up and keep the funds for other new stocks.
My comments are for reference only and do not constitute any investment advice. The stock market is risky, and investment should be cautious!
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