Recently, Kexing Biopharm Co.,Ltd. disclosed the results of its latest shareholder inquiry transfer. Controlling shareholder Keyi Medical transferred 10.0628 million unrestricted tradable shares to 21 institutional investors at 30.88 yuan per share, representing 5% of the total share capital, with a total transaction value of approximately 311 million yuan.
Notably, the transfer price represented a discount of nearly 30% compared to the average price over the previous 20 trading days, and also showed a significant decline from the inquiry transfer price of 36.7 yuan per share in early August. The effective subscription multiple was only 1.01 times, barely covering the transfer quota, indicating lukewarm institutional interest.
Looking at a longer timeframe, Keyi Medical has cumulatively cashed out 754 million yuan over the past three months through centralized bidding, block trades, and two rounds of inquiry transfers. Meanwhile, Kexing Biopharm Co.,Ltd. also plans to issue technology innovation corporate bonds worth up to 800 million yuan, creating a dual capital flow pattern of "controlling shareholder stake reduction and cash conversion + listed company debt issuance for capital replenishment."
This series of capital operations is widely interpreted by the market as a prelude to Kexing Biopharm Co.,Ltd.'s Hong Kong IPO.
A careful review of the reduction path reveals that Keyi Medical chose to initiate the stake reduction when the company's share price was at historical highs. In early June, Kexing Biopharm Co.,Ltd.'s share price once surged to 63.99 yuan per share, prompting the controlling shareholder to immediately reduce its 3% stake through centralized bidding and block trades at an average price of approximately 36.9 yuan per share. Subsequently, it launched two rounds of inquiry transfers in July and September, both with discount rates as high as 30%, significantly higher than the average discount level for inquiry transfers in the pharmaceutical industry (21.35%).
Analysts point out that the high discount and rapid pace of stake reduction reflects the controlling shareholder's urgent need for capital recovery and may also suggest a cautious attitude toward short-term stock price trends.
On August 22, Kexing Biopharm Co.,Ltd. officially announced its plan to launch a Hong Kong IPO. The interim report released almost simultaneously showed that the company achieved net profit of 80.3445 million yuan in the first half of the year, a substantial increase of 576.45% year-on-year, with operating cash flow turning from negative to positive, presenting characteristics of "profit growth, stable cash flow, and slight revenue decline."
The Hong Kong stock market has clear requirements for listed companies' equity structure, typically requiring public shareholding of no less than 25%. Keyi Medical's shareholding ratio was still 66.01% as of the 2024 annual report, and after multiple stake reductions, it has now dropped to 54.5%, but remains well above the controlling shareholder holding levels typically required for Hong Kong stocks. This means that if Kexing Biopharm Co.,Ltd. successfully lists in Hong Kong, its equity structure will need further dispersion.
Additionally, the two rounds of inquiry transfers brought in a total of 35 institutional investors, covering various types of professional investment institutions including public funds, securities firms, QFIIs, and private funds. The participation of these institutions can not only enhance the diversity and stability of the company's shareholder structure but also provide endorsement for subsequent Hong Kong stock issuance and boost international investor confidence.
With controlling shareholders significantly discounting their "cash-out" on one hand and the listed company issuing debt for "capital replenishment" on the other, Kexing Biopharm Co.,Ltd.'s dual-track capital allocation strategy demonstrates that the company is making thorough preparations for cross-border capital operations. However, the high-discount stake reduction also conveys the controlling shareholder's conservative judgment on current valuation levels to some extent, potentially exerting some pressure on A-share market sentiment.
As the Hong Kong IPO process advances, whether Kexing Biopharm Co.,Ltd. can achieve higher valuations in international capital markets remains to be seen.
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