Zhendong Pharma plans Shenzhen GEM listing
Shanghai. October 19. INTERFAX-CHINA - Shanxi Zhendong Pharmaceutical Co. Ltd. plans to launch an initial public offering (IPO) on Shenzhen's Growth Enterprise Market (GEM), the company stated in its preliminary prospectus released Oct. 18.
According to the prospectus, the company plans to issue 36 million shares which will account for 25 percent of its total shares after the issuance. The proceeds will be used to fund expansion.
Zhendong Pharma will invest RMB 48.44 million ($7.29 million) in a new processing plant for sophora flavescens in Shanxi's Changzhi County, and in several plantations of the herb in the province covering a total area of 32,000 mu (21.33 square kilometers).
The company intends to invest RMB 96.66 million ($14.55 million) to expand its current production facilities for small volume parenterals, which will relieve a production bottleneck for its flagship TCM anti-tumor product, Yan Shu sophora flavescens injection.
The company will also inject RMB 160.5 million ($24.16 million) to expand production capacity for granule drugs and to build new production lines for lyophilized and sterile injections.
Zhendong Pharma is mainly engaged in the production and distribution of traditional Chinese medicine (TCM) finished dosage products and chemical drugs.