Shanghai Fudan Zhangjiang Bio-Pharmaceutical is hoping to raise up to HK$277.2 million from a Growth Enterprise Market initial public offering to fund research and development projects. Fudan Zhangjiang's sole revenues come from technology transfer fees the Shanghai-based pharmaceuticals firm receives from selling the rights to drugs it develops. Chairman Wang Haibo said: 'You can find a lot of companies with this sort of business model listed on Nasdaq [Stock Market in the United States]. In Asia, our investors' way of thinking is more traditional and they want to see returns in the short term.' In the past two years, Fudan Zhangjiang transferred the technology of four Chinese medicines for revenue of 36 million yuan (about HK$33.74 million) to shareholders Shanghai Pharmaceutical and China General in exchange for cash. Fudan Zhangjiang is planning to use the listing proceeds to fund more research and develop recombinant human lymphotoxin-alpha derivatives, used to treat lung cancer, and other drugs. The company will offer 198 million H shares priced between HK$1.13 and HK$1.40. Joint lead managers Barits Securities and Guotai Junan Securities will price the issue on August 5 and Fudan Zhangjiang's shares will begin trading on August 13. Fudan Zhangjiang originally planned to offer 180 million H shares but Beijing regulations required it to issue an additional 18 million domestic state shares, or 10 per cent of the offer, and contribute the proceeds to the National Social Security Fund. Fudan Zhangjiang was started up by five professors from Fudan University in 1996 but it has attracted a number of institutional investors. Fudan Zhangjiang's key shareholders now include state-owned enterprises such as A share Shanghai Pharmaceutical, China General, A share Shanghai Zhangjiang Hi-Tech Park as well as Fudan University.