CanSino to Issue 24.80m Shares on STAR Market at RMB209.71

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CanSino Biologics [6185:HK] announced that it will issue 24.80m A-shares on the SSE STAR Market to raise RMB5.2bn, at an issuance price of RMB209.71 per share, as reported by Caixin on July 30, citing the company's notice released on HKEX [0388:HK]. This marks the second-highest offer price on the STAR Market so far. CITIC Securities [6030:HK] act as the main sponsor and joint lead underwriter of the listing while China International Capital Corporation (CICC) [3908:HK] acts as the other joint lead underwriter.

In July, CanSino announced that its COVID-19 vaccine phase II clinical trial achieved promising results and it is now planning to conduct the phase III trial soon. According to Reuters and Nikkei’s reports, CanSino is negotiating with Russia, Brazil, Chile, and Saudi Arabia for phase III vaccine testing while collaborating with the National Research Council of Canada to start the third stage there as well. However, since listed in HKEX in March 2019, the company has not recorded a net profit, but a net loss of RMB156.78m in 2019. According to CanSino’s prospectus, the firm focuses on R&D and commercialization of vaccines, but none of its products has been approved to sell on the Chinese market yet. The company has two vaccines ready for commercialization as of April 2020, which are its Ad5-EBOV vaccine targeting the Ebola virus and MCV4 vaccine targeting meningitis.

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