Withus Pharmaceutical Co.’s initial price offering (IPO) was priced at 15,900 won ($13.23), the highest end in its desired price band, as the entrant benefited from renewed frenzy over Korean bio stocks.
The Korean pharmaceutical company attracted 1,114 institutional investors during a two-day book building last week for 960,000 shares or 60 percent of its total IPO shares, which means more than 1,000 times oversubscription.
The company aims to raise about 15.8 billion won through the IPO and the proceeds will be used to boost production capacity, expand a logistics center and finance development programs for its bi-layered tablet-based modified therapies.
Withus Pharm is specialized in formulation technology for medicines used to treat age-related diseases such as circulatory and musculoskeletal agents, with a focus on a portfolio of high value-added products such as first generics and specialized formulations.
The company will strengthen its portfolio by adding more bi-layered tablet-based modified meds and obtain new growth engines by entering the hair loss treatment market in the future. Two new bi-layered tablets are scheduled to be launched late this year and early next year. The company also completed a CMO deal with Inventage Lab, a local biotech startup.
Under the agreement, Withus Pharm will have domestic and worldwide exclusive rights to produce a long-acting injectable drug for the treatment of hair loss using patented microsphere-based DDS technology transferred from Inventage Lab.
The company has allocated 320,000 shares, or 20 percent of its total IPO shares, available to retail investors on June 25-16 ahead of listing on the Kosdaq on July 3. Lead managers for the IPO transaction are NH Securities & Investment Co. and Samsung Securities Co.
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