IPO Details

• Purpose of IPO
  Cloudbreak‑B is seeking to raise approximately HKD 612 million by issuing 60.582 million shares at HKD 10.10. Net proceeds (~HKD 522 million) will be allocated to:

  • R&D and clinical development,

  • Expansion of manufacturing capabilities,

  • Commercialization of its lead ophthalmic biologic assets.
    This is firmly a growth-focused IPO, aimed at accelerating product development and scaling operations.

• Dividend Commitment
  No dividend policy announced; all funds are earmarked for R&D and business growth.

• Placement Amount
  Offering 60.582 million shares globally (including 54.5235 million international and 6.0585 million for Hong Kong public) at HKD 10.10, raising about HKD 612 million.

• Outstanding Shares
  Post-IPO outstanding share count is not fully known; however, expected float is sufficient for a standard biotech listing.

• First-Day Outlook
  At a moderate valuation (~PE and market cap not yet defined), biotech listings often exhibit volatility. With solid institutional backing, a modest to strong debut is possible, unless market sentiment weakens.

• Institutional / Anchor Investors
  Prospectus indicates two cornerstone investors—Wealth Strategy Holding and the Reynold Lemkins Group—each committed roughly USD 22.8 million (total ~USD 45.6 million), covering ~7.5% of the IPO.

• Subscription Levels
  Exact retail subscription figures are undisclosed, but strong cornerstone support suggests decent institutional confidence.

• Pre-IPO Selling
  No insider or sales pre-IPO—suggesting high promoter and management retention.

• Joint Sponsors & Global Coordinators:
  CCBI Capital and Huatai International.

• Bookrunners/Underwriters:
  Large syndicate led by CCB International and Huatai Financial.

• First-Day Outlook
  Top-tier underwriters’ involvement adds credibility, likely supporting smoother trading and potentially helping the stock to open near market or modest premium, assuming demand holds.

Business Model & Industry

• Clinical-stage biotech focused on ophthalmic biologics (e.g., treatments for macular degeneration).

• This is a fast-growing niche within biotech, attracting investor interest due to unmet medical needs and pricing power potential.

Financial Health

• The company is pre-revenue from product sales; financial statements focus on R&D expenditures and cash burn rates. No profitability yet.

Market Position

• Targeting therapies for significant retinal diseases.

• Competing in a specialized biotech segment with high barriers, though also high risk and dependent on clinical success.

Management Team

• Founder and CEO Ni Jinsong (~29.2% ownership),

• Major shareholders include Bright Future Pharmaceutical Laboratories (~11.4%) and other strategic investors.
  Management has strong equity alignment and clinical/industry credentials.

a) Sector Trends

Ophthalmic biologics, especially anti-VEGF and gene therapies, are seeing rising demand. As the global population ages, market demand is strong and projected to grow 6–8% annually.

b) IPO Timing

Book-build and offering period ran from June 24–27, with listing scheduled for July 3, 2025. Timing aligns with a generally supportive biotech window despite macro uncertainty.

c) Economic Climate

Hong Kong biotech listings have been cautious but recovering. Investor focus remains on quality clinical-stage assets.

d) Recent News

No price guidance changes. Industry peer performance is mixed; biotech remains volatile.

e) Market Conditions

Biotech IPO sentiment is improving, but overall investor appetite remains selective. Cloudbreak’s credible science and cornerstone backing support its appeal.

f) Prospectus Highlights

Strong emphasis on R&D pipeline, manufacturing capability expansion, and clinical milestones.

g) Risk Factors

• Clinical development delays/failure,

• Financing risk after IPO capital is used,

• Regulatory setbacks across multiple countries,

• High cash burn with no revenue.

h) Growth Strategy & Ownership

• Pipeline advancement to mid-phase trials,

• Building commercial-scale capacity,

• Promoter retains ~29% pre-offer; expected >25% post-listing. Lock-up periods likely in place (standard 6–12 months).

a) Key Metrics

Cloudbreak’s post-money market cap estimated from shares outstanding × price.

b) IPOs in Same Period

Other biotech names like Medtide, IFBH, Unisound listing simultaneously did not share a clinical focus, giving Cloudbreak a unique investor positioning as biotech play.

c) 10-Day Sector Performance

Hong Kong biotech mini-caps have seen +5% to -5% fluctuations past 10 days—Cloudbreak’s debut will likely mimic early volatility trend.

• Finimize and IFR note clinical-stage biotech IPOs remain “high-risk, high-reward”.

• Institutional quotes denote strong take-up from cornerstone investors, signaling cautious optimism within the healthcare investor community.

• Allotment likely announced July 2, close to listing day.

• Cornerstone investor commitments are firm; the public tranche drawdown may see oversubscription, especially for small allocations, common for biotech listings.

• IPO Price: HKD 10.10

• Estimated First-Day Range: HKD 10.10–11.50 (+0% to +14%)

• Probability of strong debut: Moderate — supported by cornerstone backing but tempered by clinical risk and limited retail demand.

Recommendation

Suitable for long-term biotech-focused investors confident in clinical pipeline. Short-term speculators may see limited first-day gains; deeper upside depends on trial data and regulatory milestones.

Prospectus Access

Final prospectus will be available from HKEXnews under listing code 02592 and via Cloudbreak Pharma’s official site post-booking period.

📌 Final Summary

Cloudbreak Pharma’s IPO presents a solid biotech growth opportunity backed by institutional investors. Controlled debut expected; major value hinges on successful clinical progress. Good for informed biotech investors with medium to long-term horizon.

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