Ocumension climbs on debut after $184m Hong Kong IPO

The company sold 105.9 million shares for HK$14.66 apiece, with the portion of the offering allocated to Hong Kong-based investors more than 1,895 times oversubscribed, according to a release. A further 15.8 million shares were sold under the overallotment option for international investors.

Ocumension's stock opened at HK$36.30 on July 10 and peaked at HK$39.20 before falling back to close at HK$37.00. As of late morning trading on July 13, it was at HK$33, down 10.8%.

Established in 2017 by 6 Dimensions Capital, a private equity fund jointly managed by Frontline BioVentures and WuXi Healthcare Ventures, Ocumension primarily acquires licenses for ophthalmic drugs developed overseas. It claims to have 16 drug assets with three eye drop treatments that have received approval for sale in the US. In China, two eye drop treatments have been approved for sale while a further eight drugs are currently awaiting pre-clinical trial. Other drugs are in advanced phases in the two countries. 

The company began building an R&D and production base in Suzhou earlier in the year. It has also been expanding its sales force and developing marketing strategies. Ocumension listed under the rules permitting Hong Kong IPOs by pre-revenue biotech companies. Its net loss widened from RMB209.4 million ($29.9 million) in 2018 to RMB1.3 billion last year, largely due to the issuance of preferred shares and share purchase options.

In 2018, Ocumension received angel and Series A funding from Frontline BioVentures – a life sciences-focused Chinese venture capital firm – and 6 Dimensions Capital, which was founded the prior year. Boyu Capital, Temasek Holdings, General Atlantic, Lake Bleu Capital, 3W Partners, Eight Roads, and Cormorant Asset Management participated in a $180 million Series B in 2019.

Following the IPO – but prior to the overallotment option – 6 Dimensions owned 45.37% of Ocumension. Boyu's stake was 13.6%, while Temasek and General Atlantic held 9.47% and 4.54%, respectively.  

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• Topics
• Greater China
• IPO
• Healthcare
• China
• Boyu Capital
• Temasek Holdings
• General Atlantic
• Eight Roads
• 6 Dimensions Capital
• Frontline BioVentures