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Drugmaker seeks $99m in GEM float

Andy Chen

Biosino Bio-Technology and Science, a GEM listing candidate, has begun marketing its $99 million float, testing the market with returns of eight to 12 times forecast earnings, sources said.

The drug and pharmaceutical product maker is offering 33 million shares at an indicative price range of $2 to $3 each, all by placement. The offer will close on Wednesday.

The main business streams of the company include manufacturing of clinical diagnostic reagents for cardiac and hepatic diseases and drug capsules.

Biosino's net profit for the first eight months of last year dropped 7.13 per cent year on year to 17.57 million yuan while turnover rose 10.08 per cent to 87.45 million yuan. The company's gross margin was 70.49 per cent during the period and net margin was 20.09 per cent.

Hong Kong-listed Beijing Enterprises Holdings holds a 24.5 per cent stake in Biosino.

According to the sources, assuming the price of the shares to be $2.50, the company plans to use $35 million in research and development of new products, $15 million to improve its sales and marketing network and $10 million for construction of its Changping production facilities.

The rest of the money raised will be used as general working capital.

Shares of Biosino are tentatively set to start trading on February 27.

SBI Crosby is the sponsor of the offering while Partners Capital is the lead manager. Taiwan Securities is the co-manager.

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