Five law firms have secured roles on QuantumPharm’s HKD989 million (USD127 million) debut on the HKEX in the city’s first IPO launched via the new Chapter 18C listing regime for specialist technology companies.
AI drug researcher QuantumPharm issued 187 million shares, selling at HKD5.28 apiece.
Sidley Austin acted as QuantumPharm’s Hong Kong and US counsel. Its team was led by Constance Choy, the managing partner for the Asia-Pacific region, and partners Ding Meng and Claudia Yu. New York-based partners Carla Teodoro and Nicholas Brown participated by advising the technology company on the Investment Company Act of 1940 and US tax matters.
Partners Jeffrey Ding, Diana Li and Lu Chen led Fangda Partners’ team to advise QuantumPharm on PRC law. They were assisted by partners Claudia Yun, Zou Wen and Gil Zhang.
Maples Group acted as QuantumPharm’s Cayman Islands counsel.
Herbert Smith Freehills advised the sole sponsor CITIC Securities and overall co-ordinators on Hong Kong and US law, with its team was led by Matt Emsley, Stanley Xie and Kong Jin.
JunHe advised CITIC Securities and underwriters on PRC law, its team was led by partners Tao Xudong, Paul Lin, Zhang Jianwei and Jean Zhang.
QuantumPharm was established in 2015 with Tencent its largest pre-IPO investor.
Biocytogen Pharmaceuticals, FaaS Capital Longevity and Successful Lotus – an investment company owned by Henderson Land’s co-chairman Lee Ka-kit – are among the eight cornerstone investors that subscribed to approximately HKD340 million worth of shares.
In March last year, Chapter 18C was introduced to allow specialist technology companies that had yet to record revenue to apply for listing. So far, QuantumPharm and Black Sesame International have applied via this route.
Winnie Han, HKEX’s head of China issuer services and senior vice president of global issuer services, previously said many companies had intended to pursue an IPO through the Chapter 18C route when they approached the HKEX for consultation.
However, their businesses had grown within a year or two and were able to fulfil listing requirements under another regime – Chapter 8 – instead.
Chapter 18C is suitable for companies in the field of next-generation information technology, advanced hardware and software, advanced materials, new energy and environmental protection, and new food and agriculture technologies. Han emphasised that the launch of the Chapter 18C listing regime represents the HKEX and the SAR market’s enthusiasm for these five sectors.
