DLA Piper advises on Hong Kong IPO of Chinese biotech company Xuanzhu Biopharmaceutical

DLA Piper has advised the sole sponsor and underwriters on the global offering and listing of the Chinese biotech company Xuanzhu Biopharmaceutical on the Main Board of the Hong Kong Stock Exchange (HKEX) under Chapter 18A of the Hong Kong Listing Rules, raising approximately HKD781 million (approx. USD100.4 million). The Hong Kong public offering was oversubscribed by over 4,900 times, making it one of the most popular new listings this year.

The listing marks a spin-off of Xuanzhu Biopharmaceutical from its parent company, Sihuan Pharmaceutical Holdings Group under Practice Note 15 and provides Xuanzhu Biopharmaceutical with enhanced financial flexibility and a dedicated platform for its innovative drug development, while enabling Sihuan Pharmaceutical to focus on its medical aesthetics business.

Xuanzhu Biopharmaceutical is an innovation-driven biopharmaceutical company in China that leverages its deep understanding of China's pharmaceutical industry and insights of its unique clinical needs to improve patient health and life. Since its inception in 2008, it has built a comprehensive in-house R&D platform that has supported its development of a highly competitive and balanced pipeline. It has over ten drug assets under active development covering digestive diseases, oncology and nonalcoholic steatohepatitis (NASH). Its track record includes the successful development and subsequent transfer of or out-licensing of four drug candidates to leading pharmaceutical companies.

The DLA Piper team was led by George Wu, Co-Head of Equity Capital Markets EMEA and Asia Pacific, with support in Hong Kong from senior associate Jack Li, registered foreign lawyer Jessica Sun, associate Marcus Ng, legal assistant Nicholas Chan, legal officer Ivy Chung and trainee solicitor Bernie Wong. Additional support was provided by legal assistants Charlotte Wang and Jack Du in Shanghai.

Commenting on the listing George said: "This milestone transaction reflects strong investor confidence in Xuanzhu Biopharmaceutical's innovation capabilities and growth trajectory, as well as the vitality of Hong Kong’s capital markets. We look forward to seeing the company's continued impact on the healthcare landscape in China."

This marks the third significant Hong Kong IPO transaction led by George Wu and the DLA Piper team so far this year, following the listings of 160 Health in September and Chifeng Jilong Gold Mining Company in March - underscoring the firm's deep expertise in equity capital markets transactions.