Baili Pharmaceutical Co., Ltd.

Date of Prospectus: November 7, 2025

Baili Pharmaceutical’s Hong Kong IPO: Key Details, Institutional Interest, Financial Strength, and Investor Outlook

IPO Snapshot: Baili Pharmaceutical H Share Listing

Baili Pharmaceutical, a leading oncology-focused biopharmaceutical company, is launching its H Share IPO on the Hong Kong Stock Exchange. The IPO represents a major capital markets event for the PRC healthcare sector, offering investors exposure to innovative drug development and commercialization.

• IPO Symbol: Not explicitly disclosed; H Shares to be listed on the Stock Exchange of Hong Kong
• Offer Price Range: HK\$347.50 (low end) to HK\$389.00 (high end) per H Share
• Number of Shares Offered: 8,634,300 H Shares (representing approximately 2.05% of post-IPO share capital)
• Hong Kong Public Offering: 863,500 H Shares (10% of total offer)
• International Offering: 7,770,800 H Shares (90% of total offer)
• Cornerstone Investors: 638,900 to 715,100 H Shares, depending on final pricing
• Expected Listing Date: Monday, November 17, 2025

Use of Proceeds: Growth-Driven Strategy

Baili Pharmaceutical aims to deploy IPO proceeds for:

• R&D for Innovative Drugs: Significant funding allocated to advance global clinical development and strengthen core competitiveness.
• International Expansion: Capital infusion to support the company’s multinational ambitions and global leadership in oncology drugs.
• Working Capital: To ensure sufficient liquidity for strategic growth and operational needs.

Recent fundraising highlights include a September 2025 placement of 11,873,817 A Shares at RMB317.00 each, raising approximately RMB3.76 billion for R&D and innovation-focused projects [[35]].

Dividend Policy

No formal dividend policy or fixed payout ratio is currently in place. Cash or other forms of dividends may be declared at the Board’s discretion, subject to performance, cash flows, and future prospects. The company’s ability to pay dividends will depend on results of operations, business prospects, and statutory/regulatory restrictions [[36]].

Placement and Issuance Breakdown

• Public Offer: 863,500 H Shares (10%)
• International Offer: 7,770,800 H Shares (90%)
• Cornerstone Investors: Up to 715,100 H Shares (8.28% of the offer)
• Key Cornerstone Investors: BMS (Bristol-Myers Squibb), OAP III (HK) Limited, GL China Long Equity Opportunities SPV L.P., Athos Capital, Fullgoal Fund [[508-509]]

Cornerstone investors will not become substantial shareholders post-IPO and their allocations count toward the public float. No deferred settlement or delayed delivery applies to these shares [[506-507]].

Investor Participation and Book Quality

The presence of globally recognized institutions, such as BMS and major funds, signals strong institutional confidence. Book-building for the International Offer targets QIBs and professional investors globally. The structure and allocations suggest a solid foundation for first-day trading support, with no pre-listing disposals or sales by early shareholders disclosed [[633]].

Deal Structure and Key Parties

• Joint Sponsors: Goldman Sachs (Asia) L.L.C., J.P. Morgan Securities (Asia Pacific) Limited, CLSA Limited, SDICS International Securities (Hong Kong) Limited [[617]]
• Joint Global Coordinators/Bookrunners/Lead Managers: Same as above
• Underwriters: Hong Kong and International Underwriters as named above
• Compliance Adviser: Messis Capital Limited

Underwriting Structure: Both Hong Kong and International tranches are fully underwritten. Underwriters receive a fixed fee (2.5% of total offer) plus a possible discretionary incentive (up to 1.0%), with total estimated listing expenses of HK\$162.1 million (5.1% of gross IPO proceeds) [[610, 626-627]]. No explicit mention of over-allotment or stabilization (greenshoe) in the disclosed content.

Given the caliber of participating banks and sponsors, listing-day performance is positioned to benefit from robust institutional support and professional syndicate management.

Company Overview: Baili Pharmaceutical at a Glance

Baili Pharmaceutical is a PRC-incorporated, oncology-focused biopharmaceutical company primarily engaged in developing, manufacturing, and commercializing innovative cancer treatments. The company operates through subsidiaries and manufacturing bases in Sichuan and Lhasa, China [[38, 42]].

Key revenue streams include the commercialization of proprietary drug candidates, with a focus on innovative therapies such as iza-bren. The company is expanding internationally, leveraging earlier success on the SSE STAR Market (Stock Code: 688506) and now seeking global capital access via Hong Kong [[34, 262]].

Geographic Reach: Majority of business and operations are in mainland China, with increasing global orientation.

Customer Segments: Oncologists, hospitals, healthcare systems, and strategic partners such as BMS.

Business Model: R&D and clinical development, regulatory approvals, and commercialization of innovative oncology drugs.

Industry Landscape and Financial Health

Baili Pharmaceutical operates in the fast-growing PRC oncology drug market. Industry reports (by CIC) highlight robust demand and innovation trends. The company’s listing follows its successful A Share IPO on the SSE STAR Market, with a market capitalization of approximately RMB9.9 billion and net IPO proceeds of RMB884.4 million. As of the latest date, 93.49% of those proceeds had been utilized for growth [[262]].

Financial Health: Recent periods show strong liquidity, with current and quick ratios improving in 2024 and the first half of 2025. Gross profit margin is volatile, peaking at 95.0% in 2024 and normalizing to 39.6% in 2025. No material adverse change in financial or trading position has occurred since June 30, 2025 [[30, 612, 851]].

Market Position and Competitive Strength

Baili Pharmaceutical’s competitive advantages stem from its innovation pipeline, strategic partnerships (notably with BMS), and established manufacturing bases. The company’s market capitalization and rapid utilization of IPO proceeds underscore its ability to execute growth strategies and maintain leadership in oncology.

Management Team

Directors and senior management are identified in the prospectus, with full responsibility for disclosure. Names and roles are available in the corporate information section, ensuring experienced stewardship and compliance [[158, 843]].

Sector Trends, Timing, and Market Environment

Industry reports highlight sustained demand for oncology therapies in China, with innovation and regulatory tailwinds. Baili Pharmaceutical’s IPO timing coincides with favorable market conditions, supported by strong institutional interest and recent capital raises. The offer period runs from November 7-12, 2025, with listing expected November 17, 2025 [[5, 161, 638]].

Recent developments include strategic fundraising and collaboration agreements, further enhancing the company’s growth trajectory and market footprint [[35, 508]].

Key Risk Factors

• Clinical Development Risks: Success depends on the commercialization of drug candidates such as iza-bren. Delays, regulatory hurdles, or adverse clinical events could materially impact prospects.
• Regulatory Approval: Lengthy and unpredictable processes with agencies such as NMPA and FDA.
• Adverse Events: Drug safety issues could halt trials or limit commercialization.
• Sector Risks: Differences in PRC and Hong Kong legal, financial, and market systems may affect investor outcomes.
• Market Risks: No guarantee of share price appreciation post-listing; investors may lose part or all of their investment [[31, 144-146, 71-72]].

Growth Strategy

Baili Pharmaceutical pursues a growth-driven agenda:

• Expansion of R&D Pipeline: Major proceeds allocated to innovative drug development.
• Internationalization: Leverage Hong Kong listing for global clinical development and strategic positioning.
• Strategic Partnerships: Notably, a collaboration agreement with BMS signed December 11, 2023.
• Operational Spin-off: Potential spin-off within three years post-listing to further focus business units [[150-152]].

Ownership and Lock-up Structure

Post-IPO, cornerstone investors hold less than 7% of total issued shares, with no one investor becoming a substantial shareholder. The company and major shareholders are subject to lock-up arrangements under Hong Kong Listing Rules, prohibiting further share issuance or transfer within six months post-listing, except under specific circumstances [[623]].

Listing Outlook

Baili Pharmaceutical’s IPO demonstrates strong institutional backing, high book quality, and a clearly growth-driven use of proceeds. The substantial participation from global anchors, prudent financial management, and robust sector trends suggest the IPO is well positioned for a positive first-day performance. With cornerstone allocations, full underwriting, and prominent bookrunners, the offering is expected to be well supported at and above the mid-point of the price range, barring external market volatility.

Based on disclosed figures, initial trading is likely to be strong relative to the offer price, benefitting from institutional demand and sector momentum. Investors seeking exposure to PRC oncology innovation may find Baili Pharmaceutical’s IPO compelling.

Prospectus Access

Prospective investors can view the full prospectus at:
www.hkexnews.hk
www.baili-pharm.com

How to Apply

• Application Channels: White Form eIPO service at www.eipo.com.hk; electronically via HKSCC EIPO channel through brokers or custodians participating in HKSCC’s FINI system.
• Application Window: Opens Friday, November 7, 2025, 9:00 a.m. – Closes Wednesday, November 12, 2025, 12:00 noon (Hong Kong time).
• Eligibility: Applicants must be aged 18 or above; Hong Kong address required for White Form eIPO applications.
• Steps: Apply online or via broker/custodian; pay the maximum offer price (plus fees) per H Share; refunds will be provided if final price is below the maximum [[638, 645]].