On December 10, Shanghai Baoji Pharmaceutical Co., Ltd. (2659, hereinafter referred to as: Baoji Pharmaceutical) officially rang the bell and landed on the main board of the Hong Kong Stock Exchange, becoming another domestic innovative drug company to enter the Hong Kong capital market.
As of the close of trading on that day, Baoji Pharmaceutical's stock price was HKD 63 per share, an increase of 138.32% compared to the issue price of HKD 26.38 per share, with a total market capitalization rising to HKD 20.537 billion.
With the doubling of the stock price, the shares held by Baoji Pharmaceutical's shareholders and cornerstone investors also surged, even earning over HKD 100 million in a single day.
<h2>Cornerstone Investors' Paper Profit of HKD 278 Million</h2>
According to Sing Tao, Baoji Pharmaceutical's IPO issue price was HKD 26.38 per share, with a total of approximately 37.9117 million shares offered. The Hong Kong public offering was oversubscribed by 3,526.34 times, and the international offering was subscribed 6.59 times, ultimately raising a net amount of approximately HKD 922 million.
During the dark trading phase the previous night, Baoji Pharmaceutical had already surged over 110%, with a total market capitalization exceeding HKD 18 billion. On the first day of listing, the stock price opened at HKD 60.5 per share, and subsequently rose further, ultimately driving the market capitalization to surpass HKD 20 billion.
It is reported that before the listing, Baoji Pharmaceutical had completed six rounds of capital increase and equity financing from 2020 to 2024, with a cumulative financing amount reaching RMB 1.531 billion. Major investors include Shengde Pharmaceutical, Fangyuan Capital, Yuanchuang Duoying, and Shanghai Biomedical Industry Fund, with the company's valuation gradually rising from RMB 209 million in 2020 to RMB 4.87 billion after the C+ round financing in 2024.
In this IPO listing, Baoji Pharmaceutical once again introduced three well-known cornerstone investors, including Anke Biotechnology (Hong Kong), Derivatives China Alpha Fund SPC, and Guotai Junan Securities, collectively subscribing to 7.6041 million shares, accounting for 20.06% of the total shares offered globally.
Based on the closing price on that day, the doubling stock price of Baoji Pharmaceutical also resulted in a cumulative paper profit of HKD 278 million for the aforementioned three cornerstone investors on the first day of listing, with Anke Biotechnology holding 4.2456 million shares, achieving a single-day paper profit of HKD 155 million.
In addition, the controlling shareholders of Baoji Pharmaceutical consist of three concerted actors and three equity incentive platform companies, including co-founders Liu Yanjun and Wang Zheng, executive director and internal control director Tan Jingwei, as well as Shanghai Luoxu, Ningbo Hongsheng, and Shanghai Luojun.
The aforementioned controlling shareholders collectively hold approximately 106 million shares, accounting for 40.56% of the total share capital. If calculated based on the first-day closing price, the value of their shares has reached HKD 6.678 billion, with a wealth increase of nearly HKD 4 billion in one day, adding another footnote to the benefits of the capital market.
<h2>Core Products Set to Launch for Sale</h2>
Market analysis indicates that Baoji Pharmaceutical's listing is popular not only due to the current boom in biotech stock listings in Hong Kong but also because one of its core products reached an external licensing cooperation in September 2024 and received approval for its listing application from the National Medical Products Administration in August this year, allowing for official commercialization in the domestic market by the end of this year. Its future development is more certain compared to other innovative drug companies still in the early clinical stages
According to the data, BAO PHARMA was established in December 2019, primarily utilizing synthetic biology technology to develop and provide recombinant biopharmaceuticals, focusing on four therapeutic areas: subcutaneous administration, antibody-mediated autoimmune diseases, assisted reproductive drugs, and recombinant biopharmaceuticals to replace traditional biochemical products.
Currently, BAO PHARMA has 12 independently developed products under research, including 3 core products (KJ017, KJ103, and SJ02), 4 other clinical stage candidate drugs, and 5 preclinical assets.
Among them, the core product SJ02 (Shengnuowa®) is used for controlled ovarian stimulation, promoting follicular development, and inducing ovulation. In November of this year, the first batch of orders has been delivered, and the commercialization process is about to begin. This is also one of only two long-acting recombinant human follicle-stimulating hormone products approved for market in the domestic market.
In terms of finance, although BAO PHARMA has not yet had any products truly launched for sale, the revenues for the first half of 2023 to 2025 are projected to be 6.9 million yuan, 6.2 million yuan, and 4.2 million yuan, mainly from the sale of materials, technical services, and upfront payments received from external licensing agreements.
During the same period, BAO PHARMA still reported losses, with net profits of -160 million yuan, -364 million yuan, and -183 million yuan respectively; R&amp;D expenses were 133 million yuan, 251 million yuan, and 111 million yuan respectively; as of the end of June 2025, the company's cash and cash equivalents were approximately 453 million yuan.
Regarding the use of this fundraising, BAO PHARMA stated that it will mainly be used for the R&amp;D and commercialization of the three core products; advancing other existing pipeline products and preparing for related registration filings; and enhancing and expanding production capacity, among other purposes.
<h4>Intern reporter Huang Dongyan, Guangzhou report</h4>

02659

BAO PHARMA was listed on the main board of the Hong Kong Stock Exchange, with an issue price of HKD 26.38 per share, and a closing price of HKD 63 per share on the first day, an increase of 138.32%, with a market capitalization of HKD 20.537 billion. Cornerstone investors earned HKD 155 million per day

BAO PHARMA creates another IPO myth, cornerstone investors earn 155 million daily