06 September 2021, China: In early August 2021, the China Securities Regulatory Commission approved the application from Shaanxi Meibang Pharmaceutical Group Co., Ltd. (Meibang Pharmaceutical) for going public.
Meibang Pharmaceutical is chiefly engaged in research & development, production and sales of pesticide formulations including fungicides and insecticides. The company prepares to get listed on the Shanghai Stock Exchange and issue not more than 33.80 million shares to raise USD75.4 million, USD23.6 million of which will be used in its technological transformation of production base for manufacturing eco-friendly pesticide formulations.
According to the company, the total shares issued through this offering will take up more than 25% of its total shares after the offering.
The years 2018~2020 witnessed a positive growth in the company’s key financial figures. During these three years, its annual revenue reached USD67.8 million, USD79.7 million and USD87.9 million and the net profit was USD9.2 million, USD11.8 million and USD12.2 million, respectively.
Table 2: Meibang Pharmaceutical plans to invest funds raised in several projects
|No.||Project||Amount of investment, million USD|
|1||Technological transformation of production base for manufacturing eco-friendly pesticide formulations||23.6|
|2||Construction of a complex laboratory||11.4|
|3||Establishment of marketing network system||12.8|
|4||Corporate informatization construction||5.1|
|5||Supplementation of working capital||22.6|