China's pharmaceutical producer Qilian International debuts on Nasdaq
Qilian International Holding Group Limited, a China-based pharmaceutical and chemical products manufacturer, made its public debut on Nasdaq Global Market on Tuesday under the ticker symbol QLI.
The deal involved 5 million ordinary shares at a price of 5 U.S. dollars per share, according to the company's prospectus.
The company expects to receive aggregate gross proceeds of 25 million dollars from its initial public offering (IPO) before fees. The company has granted the underwriters a 45-day option to purchase up to an additional 750,000 ordinary shares at the IPO price. The deal is expected to close on or around Thursday.
Shares of Qilian International once shot up 340 percent to 22 dollars apiece amid trading and settled at 10 dollars per share around market close.
Xin Zhanchang, chairman and CEO of Qilian International, told Xinhua that U.S. investors have shown much confidence in the company, and willingness to cooperate with the company.
"They also gave us many suggestions on how to expand our business and broaden our market shares," he said, adding that his company will utilize international financial hubs like Wall Street to boost its growth, despite the COVID-19 pandemic and the turmoil in international relations.
For the year ending Sept. 30, 2020, the company's net revenue is estimated to increase by 5 percent to 8 percent on a yearly basis, due to the increase in net revenue in the first six months ending March 31, 2020 and rebounding market conditions in the quarter ending Sept. 30, 2020.
For the first six months ending March 31 last year, the company's net revenue reached more than 27.7 million dollars, according to the company's prospectus.
Headquartered in northwest China's Gansu Province, Qilian International focuses on the development, manufacture, marketing and sale of licorice products, oxytetracycline products, and traditional Chinese medicine derivative products, among others. The company's products are sold in more than 20 provinces in China.
Univest Securities acts as the representative of the underwriters and lead book-running manager for the IPO. Loop Capital Markets and Alexander Capital act as co-managers.