Rate Of Return
Likes Received[HK IPO Subscription] Mabwell Bio, discount rate 31.09%, not much room for profit
Mabwell Biotech was founded in Shanghai in 2017. It is an innovative biopharmaceutical company with a full industry chain covering R&D, production, and commercialization. It focuses on oncology, autoimmune diseases, orthopedics, and aging-related diseases. It has already launched four biologics, including Junmaikang and Mailishu, and has a pipeline with multiple ADC innovative drugs and biosimilars. Relying on its self-developed antibody and ADC technology platforms, it holds several national-level research projects and also engages in global drug licensing collaborations, with commercialization revenue continuing to grow.
The company's IPO subscription period began on April 20th, with an offer price range of HKD 27.64~30.71, 200 shares per board lot, a minimum subscription of HKD 6,203.95, a market cap range of HKD 12.348 billion to 13.719 billion, and an issuance of 47.1302 million shares. It belongs to the pharmaceutical industry and has no greenshoe option.
The sponsors are CITIC Securities and Haitong International. The first-day gain rate for projects sponsored by CITIC Securities in the past 2 years is 80.76%, and for Haitong International it's 78.57%. The overall performance of the sponsors is very good.
There are a total of 6 cornerstone investors, including Junshi Hong Kong, Sanjin International, Guohui Hong Kong, Changrong International, WuXi Biologics Venture, and Zhonghe Capital. The cornerstones collectively subscribed to a total of USD 53 million, accounting for 30.19% of the total issuance. The cornerstone proportion is acceptable.
The company's revenue from 2023 to 2025 was RMB 128 million, RMB 200 million, and RMB 659 million respectively, with a year-on-year revenue growth of 229.97% in 2025; the net profit for 2023~2025 was -RMB 1.059 billion, -RMB 1.047 billion, and -RMB 972 million respectively. The net loss in 2025 narrowed by 7.1% year-on-year.
Calculating based on the median offer price, a market cap of HKD 13.034 billion with an issuance of HKD 1.375 billion gives an issuance ratio of 10.55%. With cornerstones locking up 30.19%, the free float is HKD 960 million.
Mabwell Biotech has long been listed on the A-share market. This time it's doing a dual primary listing on the Hong Kong stock market. The current A-share price of Mabwell Biotech is RMB 36.86, converted to HKD 42.35, while the median Hong Kong IPO offer price is HKD 29.18. The H-share discount to the A-share is about 31.09%. Comparing it with several other pharmaceutical companies in the same industry, their average discount rate is also between 30% and 50%. It should be said that Mabwell Biotech's discount rate is relatively reasonable, but it doesn't leave much room for profit.
This issuance adopts Mechanism B under the new Hong Kong IPO rules. The initial public offering portion is 10%, with no clawback mechanism. The current subscription multiple is 24.6 times, indicating average subscription interest. There are a total of 23,566 board lots, which is not a large supply, so the winning rate will be relatively low.
Subscription Strategy:
Mabwell Biotech is an innovative biopharmaceutical company with a full industry chain covering R&D, production, and commercialization. The sponsors are CITIC Securities and Haitong International, and their overall performance is very good. The 6 cornerstone investors collectively subscribed to USD 53 million, accounting for 30.19% of the total issuance, which is acceptable. The company's revenue grew significantly year-on-year in 2025, and its net loss narrowed by 7.1% year-on-year. Mabwell Biotech is conducting a dual primary listing on the Hong Kong stock market this time. Based on the median price, the H-share discount to the A-share is about 31.09%, while the average discount rate for Hong Kong-listed companies in the same industry is between 30% and 50%. Mabwell Biotech's discount rate is relatively reasonable, but it doesn't leave much room for profit. This issuance adopts Mechanism B, with an initial public offering portion of 10% and a free float of HKD 960 million. There are a total of 23,566 board lots, which is not a large supply, so the winning rate will be relatively low. The overall quality is average. I plan to participate with just a few board lots at most!
My remarks represent personal views only and do not constitute any investment advice. The stock market carries risks; invest with caution!
$MABWELL-B(02493.HK)
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