Ringpu Bio plans IPO on Shenzhen GEM
Shanghai. August 27. INTERFAX-CHINA - Tianjin Ringpu Bio-technology Co. Ltd. will soon launch an initial public offering (IPO) on Shenzhen's Growth Enterprise Market (GEM), the company stated in its preliminary prospectus released Aug. 27.
According to the prospectus, the company plans to issue a maximum of 18.6 million shares, which will account for 25.08 percent of its total shares after the issuance.
Funds raised will be invested in the expansion of production capacity for 23 products, including eight new products, which will require a total investment of about RMB 375.80 million ($55.26 million).
Ringpu Bio will deploy RMB 253.20 million ($37.24 million) to expand production capacity for animal vaccines, including Newcastle disease live vaccine, bursal disease thermo-stable vaccine, mycoplasma gallisepticum vaccine, blue ear vaccine and transfer factor solution.
A further RMB 70.15 million ($10.32 million) will be invested to expand capacity for veterinary products including cefquinome injections and finished traditional Chinese medicines (TCM) like Zihua Hezi powder, used to treat cow mastitis.
The company also plans to increase its marketing staff from 254 to about 400 by the time the new production facilities become operational in two or three years.
In addition, about RMB 52.45 million ($7.71 million) will be used to set up a new research and development (R D) center which will focus on gene vaccines, new dosage forms and production technology for veterinary TCMs. The company also plans to increase its R D staff from 121 to 160.
Figures from the National Bureau of Statistics show that China's market for veterinary medicine ballooned from RMB 3.6 billion ($527.09 million) in 2000 to RMB 28.6 billion ($4.21 billion) in 2008 - an average annual growth rate of 29.57 percent.
Ringpu Bio achieved sales revenue of RMB 285.36 billion ($41.96 million) in 2009, up 27.32 percent from 2008.