Jincheng Pharma receives green light for Shenzhen GEM listing
Shanghai. April 20. INTERFAX-CHINA - Shandong Jincheng Pharmaceutical Chemical Co. Ltd. (Jincheng Pharma), a leading cephalosporin intermediate producer, has received regulatory approval to launch an initial public offering (IPO) on the Shenzhen Stock Exchange's Growth Enterprise Market (GEM), the China Securities Regulatory Commission (CSRC) announced April 19.
According to the firm's preliminary prospectus released April 15, Jincheng Pharma plans to issue 31 million shares, or 25.62 percent of its total shares after the issuance.
Of the funds raised, Jincheng Pharma will use RMB 198.01 million ($30.32 million) to upgrade the production technology and expand the production capacity for MAEM, BAEM and SMIA, three cephalosporin intermediates. A further RMB 64.78 million ($9.92 million) will be used to establish production facilities for 7-AVCA, another cephalosporin intermediate.
Based in the city of Zibo, Shandong Province, Jincheng Pharma registered operational revenue of RMB 759 million ($116.2 million) and net profit of RMB 104 million ($15.92 million) in 2010.
- MS