WuXi XDC Cayman Inc. $WUXI XDC 02268.HK$ announced that it plans to globally issue approximately 178 million shares, with 17.845 million shares to be issued in Hong Kong and approximately 161 million shares to be issued internationally.

The IPO will be open for subscription from November 7th to November 10th, 2023, with the expected pricing date on November 10th. The offered price will be in the range of HKD 19.90 to HKD 20.60 per share, with a trading unit of 500 shares. Morgan Stanley, Goldman Sachs, and J.P. Morgan will be the joint sponsors. The shares are expected to be listed on the Main Board of the Hong Kong Stock Exchange on November 17th, 2023.

(Please note: Cash subscription deadline is 9/11(HKT)10:00, Financing subscription deadline is 9/11(HKT)10:00 on M+ Global.)

Offering Details

Offering Details
Number of Shares	178,446,000 Shares (subject to the Over-allotment Option)
Number of Hong Kong Offer Shares	17,845,000 Shares (subject to adjustment)
Number of International Offer Shares	160,601,000 Shares (including 8,922,000 Reserved Shares under the Preferential Offering) (subject to reallocation and the Over-allotment Option)
Max. Amount	HK$ 10,403.88 per lot
Offering Price Range	HK$ 19.9-HK$ 20.6 per share
Board Lot Size	500 shares
Offering Period	November 7th to November 10th, 2023
Listing Date	November 17th, 2023

Company Profile:

WuXi XDC Cayman $WUXI XDC 02268.HK$ is a leading contract research, development and manufacturing organization (“CRDMO”) focused on the global antibody-drug conjugate (“ADC”) and broader bioconjugate market and dedicated to providing integrated and comprehensive services. Leveraging expertise in both biologics and small molecules, they offer interdisciplinary and comprehensive services, covering bioconjugate discovery, research, development and manufacturing. They provide these services from proximately located and dedicated laboratories and manufacturing facilities, leading to potentially significant reduction of development timeline and costs. They are the second largest CRDMO for ADCs and other bioconjugates globally in terms of revenue in 2022, according to Frost & Sullivan. Their global market share by revenue increased from 1.8% in 2020 to 4.6% in 2021 and 9.8% in 2022.

Financial Information

For the years ended December 31, 2020, 2021 and 2022 and the six months ended June 30, 2023, their revenue was RMB96.4 million, RMB311.1 million, RMB990.4 million and RMB993.5 million, respectively. They recorded net profit of RMB26.3 million, RMB54.9 million, RMB155.7 million and RMB177.2 million for the same periods, respectively. Their adjusted net profit (non-IFRS measure) amounted to RMB32.8 million, RMB77.1 million, RMB194.4 million and RMB216.4 million in the same periods, respectively.

THE CORNERSTONE INVESTORS:

In addition to being in a leading position in the industry, WuXi XDC Cayman's cornerstone investors also strengthens confidence in the company's fundamentals and future prospects. The cornerstone investors include Invesco Advisers, Inc., General Atlantic Singapore SPV 64 Pte. Ltd., Al-Rayyan Holding LLC, UBS Asset Management (Singapore) Ltd., HongShan Funds, Novo Holdings A/S and Lake Bleu Funds. They have agreed to subscribe for a total of approximately HKD 2.347 billion worth of shares at the offer price (assuming the exercise of the over-allotment option is not exercised and based on the median issue price).

Note: Cornerstone investors are primarily top-tier institutional investors, large corporate groups, and well-known billionaires or their affiliated companies. Cornerstone investors are required to commit to purchasing shares, and they cannot repeat their subscription. The introduction of cornerstone investors is actually an affirmation of the company's fundamentals and growth prospects, which brings great confidence to the market. For example, if you are hesitant to buy a stock, someone tells you that Warren Buffett has also bought this stock, wouldn't you have confidence to follow suit? So the role of cornerstone investors is similar to the celebrity effect.

Use of Proceeds:

Assuming an Offer Price of HK$20.25 per Share (being the mid-point of the indicative range of the Offer Price of HK$19.90 to HK$20.60 per Share), the net proceeds of the Global Offering will be approximately HK$3,423.0 million.

The campany intend to use the net proceeds from the Global Offering for the following purposes: (1) approximately 67% of the net proceeds, or HK$2,293.4 million, will be used to further expand their manufacturing capacity by (i) constructing their manufacturing facilities in Singapore and (ii) expanding their production capacity in China with respect to antibody intermediates; (2) approximately 23% of the net proceeds, or HK$787.3 million, will be used to selectively pursue strategic alliances, investment and acquisition opportunities to enrich their technology platform and service offerings; and (3) approximately 10% of the net proceeds, or HK$342.3 million, for working capital and other general corporate purposes.

Prospectus of WuXi XDC Cayman: https://www1.hkexnews.hk/listedco/listconews/sehk/2023/1107/2023110700021.pdf

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