Saturday, August 16th, 2025

Medtide Launches HK$514m IPO at Top of Range—U.S./China Expansion to Propel Peptide CDMO #3 in High-Growth GLP-1 Market

1. IPO Details

  • Purpose of IPO
    Medtide plans to raise up to HKD 514 million (~USD 65.5 million), with proceeds allocated as follows:

    • 76.4% for new peptide and oligonucleotide production facilities in the U.S. and China (including a Rocklin, California site),

    • 9.5% to expand sales and service channels,

    • 4.1% to boost existing China capacity,

    • Remaining funds for corporate expenses.
      These figures indicate a strong growth-focused IPO centered on capacity expansion and global footprint scaling.

  • Oversubscription
    Grey market activity suggests strong interest: shares traded between HKD 33.85 and HKD 31.15 against IPO price of HKD 30.60, indicating ~4–11% premium pre-listing.


  • Placement Details
    Medtide is issuing 16.8 million H Shares, priced at HKD 30.60 each.

  • Public vs Placing Split

    • 1.68 million shares for the public offering (~10%),

    • 15.12 million shares for institutional/private placement.

  • First-Day Performance Outlook
    Strong grey market premiums (+4–11%) typically signal positive debut expectations. Limited supply to public investors may intensify initial upward moves. Market likely to open above IPO price.


  • Cornerstone Investors
    CSPC Pharmaceutical and Welight Capital subscribed approximately USD 5 million each, totaling ~15.8% of the issuance—strong institutional backing.

  • Institutionals vs Public Demand
    Heavy institutional allocation with limited public share suggests a balanced distribution and strong base.

  • Pre-IPO Selling
    No insider selling reported before listing, indicating no immediate concern around promoter exit.


  • Joint Sponsors & Joint Global Coordinators: Morgan Stanley and CITIC Securities

  • Bookrunners: Also include these leading banks

  • Underwriter: Led by the same, typical in such deals.

First-Day Outlook
High-caliber banks’ involvement improves credibility and book-building depth, boosting probability of a strong first-day listing.


Business Model & Industry

Medtide is a CDMO (Contract Development, Manufacturing Organization) specializing in peptides and oligonucleotides—critical for therapies including GLP-1 weight-loss and diabetes drugs.
The peptide drug market is projected to grow from USD 89.5 billion (2023) to USD 261.2 billion (2032), at a CAGR of 12.6%.

Financial Health (2022–2024)

  • Revenues: RMB 351 m → 337 m → 442 m (drop in 2023, recovery in 2024)

  • Gross profit: RMB 201 m → 180 m → 250 m

  • Net profit: RMB 54 m → 49 m → 59 m
    2024 showed 31% YoY revenue growth and solid margin recovery, though client reliance caused a dip in 2023.

Market Position

  • Ranked #3 globally in peptide CDMO by revenue, but holds only 1.5% market share—market is top-heavy.

  • Dependent on top five clients (~>50% revenue), with one client contributing 26.8%.

  • Overseas sales account for ~79%, including 55% from the U.S., exposing Medtide to geopolitical and client concentration risks.


a) Sector Trends

Peptide and oligonucleotide therapies are in high demand, especially driven by GLP-1 weight-loss drugs. CDMO outsourcing is growing globally.

b) IPO Timing

Priced June 26, allocating shares June 27, listing expected June 30, 2025. Grey market premium suggests anticipation of strong debut.

c) Economic Environment

Hong Kong IPO sentiment is cautious, but biotech growth potential and high-quality sponsors bode well.

d) Recent News

No negative developments; IPO priced at top of indicated range, strong institutional support.

e) Market Conditions

Mixed Hong Kong IPO environment, but Medtide’s profile fits well with international investor focus on biotech growth.

f) Prospectus Insights

  • Market sizing projects CAGR of 12.6% for peptide drugs through 2032.

  • Company claims global #3 position.

g) Risk Factors

  • Customer concentration (top 5 = >50% revenue; top client = 26.8%),

  • Growth-dependent on a few GLP-1 clients,

  • Exposure to U.S.-China trade tensions (79% overseas sales).

h) Growth Strategy & Ownership

Promoters appear to retain control post-IPO; no insiders selling; lock-up details not yet disclosed but standard in HK typically 6–12 months.


Company P/E P/B Revenue CAGR Net Margin Debt/Equity Gross Margin ROE Market Share
Medtide IPO ~64×* N/A ~10–30% ~13% Low ~56% (2024 est.) N/A 1.5% (#3)
WuXi AppTec (2359.HK) ~18× ~2.5× 10–15% ~15% Moderate ~50–55% ~18% ~24% (#1)
Lonza (LONN.SW) ~25× ~3–4× ~10% ~18% Low ~55% ~15% Leading global
*At HKD 30.6 price. Reflects strong growth expectations and market premium.

b) IPO Peers in Same Period

No other major biotech CDMO peers listing in that window, so Medtide stands out on its own.

c) 10-Day Sector Performance

Biotech sector in Hong Kong/HKEX has been stable with modest gains, but grey market premium for Medtide suggests outperformance.


  • Finimize highlights credible pipeline in GLP-1 and TIDES drugs, but flags volatility from macro and execution risks.

  • brokers valued EAF offering and named Morgan Stanley and CITIC Securities lead banks—indicating institutional confidence.


IPO Allotment Result

  • Allocation date: June 27.

  • Public tranche limited (1.68m shares) and priced at top of range suggests strong demand among retail showing early strength indicators.


Investment Verdict & First-Day Estimate

  • IPO Price: HKD 30.60

  • Estimated Opening Range: HKD 32–HKD 34 (approx. +5–11%) based on grey market pricing and institutional appetite.

  • Performance Outlook: Likely strong open, but market sentiment and growth execution will determine sustained performance.

Recommendation: Worth subscribing for investors seeking exposure to high-growth peptide CDMO space. It’s a high-risk, high-reward play—pending gross margin stability, customer diversification, and macro headwinds. Ideal for biotech-focused, growth-oriented investors.


Prospectus Download

  • The formal IPO prospectus will be available via HKEX’s official website under Medtide (03880.HK) listing documents after June 20, 2025.


Medtide presents a compelling growth-driven story with top-tier institutional backing and strong grey-market performance—expected to open significantly above IPO price. Investors should weigh execution risks and customer concentration, but the IPO offers a rare entry into the booming peptide CDMO sector.

Thank you

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