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Markets · Equity · IPO
Acrobiosystems’s IPO to debut on Shenzhen Stock Exchange
2021/10/15 06:29:30

Oct 15, 2021 (China Knowledge) - Acrobiosystems (301080) to start trading on the Shenzhen ChiNext Market Oct 18, next Monday. The firm has issued 20.00 mln shares priced at RMB 112.5 per share raising RMB 2.25 bln. Its price-to-earnings ratio (PE) stands at 77.66. During subscription the IPO was 8,707 times oversubscribed.

China Merchants Securities acts as the lead underwriter and sponsor for the IPO.

Acrobiosystems develops and manufactures biomedical products. The company produces recombinant proteins and other critical reagents. Acrobiosystems focuses on product design, quality control, and solution based support businesses.

In FY 2020, Acrobiosystems garnered a total revenue of RMB 246 mln, up 138% YoY. In terms of net income, it achieved RMB 116 mln, rising 947% YoY. In H1 2021, the company reported revenue of RMB 175 mln, a YoY increase of 76%, and its net profits reached RMB 72 mln, up 71% YoY.

The company is in the pharmaceutical and biological industry that is currently made of 395 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 7,936 bln, industry’s average PE of 39 times. The pharmaceutical and biological industry’s index is up 8.82% year-to-date, ranking it the 17th place among all 29 broad industry groupings.

Shanghai Pharmaceuticals Holding Co.,Ltd (601607) takes up the top spot in terms of sales in the industry, reporting RMB 191.91 bln of sales in 2020, with a net profit of RMB 4.5 bln, at 10 times PE. The second largest is Jointown Pharmaceutical Group Co., Ltd (600998), a total revenue of RMB 110.86 bln and a net profit of RMB 3.08 bln, at 8 times PE. Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited (600332) ranked third. It garnered a total revenue of RMB 61.67 bln last year, and a net profit of RMB 2.92 bln, with 13 times PE.

The average industry’s PE for the same or similar stocks on Hong Kong Exchange (HKEx) and the U.S. stock markets for pharmaceutical and biological is 35 times and 51 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 10.46% and the U.S is up 19.13%.

There will be another 2 IPO debut next Monday, Beijing Asiacom Information Technology Co., Ltd. (301085) and Beijing Fjr Optoelectronic Technology Co., Ltd. (688272).

Since January, a total of 372 companies have listed on either Shanghai or Shenzhen Stock Exchange, most are mainly in the machinery equipment, electronics and pharmaceutical and biological industries.

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