CF PharmTech, Inc.

Date of prospectus: September 26, 2025

CF PharmTech, Inc. IPO: Inhalation Pharma Innovator Launches Ambitious Hong Kong Listing

CF PharmTech, Inc. is set to debut on the Hong Kong Stock Exchange with a high-profile IPO, targeting growth in the respiratory drug market. This comprehensive analysis covers the offer structure, financials, industry environment, and key investment considerations—delivering critical insights for investors and market watchers.

IPO Snapshot: Key Offering Details and Structure

CF PharmTech, Inc. (“CF PharmTech”) is launching its initial public offering on the Main Board of the Hong Kong Stock Exchange. The IPO symbol is not explicitly disclosed in the prospectus. The company is offering 41,198,000 H Shares, representing approximately 10.0% of its enlarged share capital post-offering, at an offer price of HK\$14.75 per Offer Share. The total market capitalization post-offering is projected at HK\$6,076.7 million based on 411,978,387 shares expected to be in issue immediately after the IPO, including the new H Shares.

Use of Proceeds: The company intends to allocate approximately 40.0% (HK\$210.2 million) to ongoing R&D, 30.0% (HK\$157.6 million) to manufacturing capacity and facility expansion, 20.0% (HK\$105.1 million) to commercialization efforts, and the remaining 10.0% (HK\$52.5 million) for general working capital—illustrating a clear growth-driven strategy focused on innovation and market expansion [[33]].

Application Period: September 26, 2025 (9:00 a.m.) to October 2, 2025 (12:00 noon).
Listing Date: Not explicitly stated, but prospectus events indicate October 6, 2025 as a key milestone (results announcement, share certificate deposit) [[4]] [[5]].

Issuance Breakdown:

• Hong Kong Public Offering: 4,120,000 H Shares (10% of the offer, subject to reallocation)
• International Offering: 37,078,000 H Shares (90%, subject to reallocation)
• Conversion of Unlisted Shares: 71,288,356 H Shares from existing shareholders for free float, representing 17.3% of total issued shares and 24.7% of total H Shares at listing [[246]]

Dividend Policy: No explicit dividend commitment or target payout ratio is disclosed in the prospectus.

Oversubscription: No final subscription or oversubscription data is provided in the prospectus.

Investor Participation and Book Quality

Anchor and Institutional Investors: The prospectus does not disclose names or allocations of cornerstone or anchor investors.
Pre-listing Disposal/Sales: All existing shareholders, including pre-IPO investors, are subject to a 12-month lock-up period post-listing, prohibiting disposals during this time [[220]].
Book Quality and First-Day Performance: The breadth of the syndicate and international tranche, plus conversion of significant unlisted shares for free float, points to a well-supported offering. However, with no subscription levels by category or book coverage ratios disclosed, first-day performance can only be inferred as potentially robust given the public float, underwriter strength, and sector interest.

Deal Parties and Offer Structure

Lead Deal Parties:

• Joint Sponsors: CITIC Securities (Hong Kong) Limited, CMB International Capital Limited
• Overall Coordinators: Named in the prospectus (see Directors, Supervisors and Parties Involved section)
• Joint Bookrunners and Lead Managers: CLSA Limited, CMB International Capital Limited, CCB International Capital Limited, Soochow Securities International Brokerage Limited, Shenwan Hongyuan Securities (H.K.) Limited, SPDB International Capital Limited, SDICS International Securities (Hong Kong) Limited, ICBC International Securities Limited, Central China International Securities Co., Limited, BOCOM International Securities Limited, ABCI Securities Company Limited, Guosen Securities (HK) Brokerage Company, Limited [[454]]

Underwriting: The Hong Kong Public Offering and International Offering are both fully underwritten. No explicit mention of a greenshoe/over-allotment option is found. Underwriting commissions and fees (including incentive fees) plus listing expenses are estimated at HK\$82.3 million, to be borne by the company [[462]]. The syndicate’s breadth and experience suggest strong market support on listing day.

Company Overview: Inhalation Drug and Technology Leader

Business Model and Products: CF PharmTech focuses on the R&D, manufacturing, and commercialization of inhalation drugs and technologies, primarily for respiratory diseases. Its portfolio covers a range of patient needs, therapeutic areas, and medical specialties. The company has secured six product approvals from the National Medical Products Administration (NMPA, China) and the US FDA, demonstrating regulatory and commercial execution [[10]]. Key product: CF017 (budesonide suspension for inhalation), a leading treatment for bronchial asthma.

Revenue Streams: Sales of proprietary inhalation drugs and related products, with revenues generated in both domestic (China) and international markets. The company’s strong clinical, manufacturing, regulatory, and commercialization capabilities underpin its business model.

Financial Health: Multi-Period Performance

Balance Sheet Highlights:

• Total current assets as of March 31, 2025: RMB 433,411,000
• Total current liabilities: RMB 207,942,000
• Net current assets: RMB 225,469,000
• Total non-current liabilities: RMB 81,301,000
• Cash flow has been sufficient to support R&D, expansion, and working capital, with most pre-IPO funds already deployed [[25]]

Industry Overview and Market Position

Industry Definition: CF PharmTech operates in the inhalation formulation market, which includes drugs and technologies for respiratory disease treatment. The company’s market research partner (F&S) provided detailed industry analyses (exchange rate: US\$1.00 = RMB7.2990 as of Dec 31, 2024) [[168]].

Competitive Advantages:

• Six regulatory approvals (NMPA and FDA) for core products
• Strong R&D and clinical development infrastructure
• Multi-specialty coverage and product pipeline
• High gross margins (over 60% in recent periods)
• Strong brand and technical capabilities in China’s largest inhalation drug segment (as demonstrated by CF017)

Management Team and Governance

Leadership is disclosed in detail in the “Directors, Supervisors and Senior Management” section. Key members include Dr. Liang (noted as a principal shareholder and leader), and other experienced executives, though individual bios and roles are not exhaustively listed in the summary sections.

Sector Trends, Timing, and Macro Environment

Sector and Regional Trends: Demand drivers include the rising prevalence of respiratory diseases, aging populations, and the need for advanced inhalation therapies in China and abroad. The company has continuously expanded its product portfolio and manufacturing capabilities to capitalize on these trends.
Recent Developments: Multiple rounds of pre-IPO financing, expansion of R&D and manufacturing, and regulatory milestones have strengthened the company’s market position. The shift from a previously planned Shanghai STAR Market listing to Hong Kong indicates strategic adaptation to capital market conditions [[247]].
IPO Timing: Offer opens September 26, 2025 and closes October 2, 2025. Listing results and share allocations are expected October 6, 2025. The window coincides with ongoing sector momentum in biotech/pharma listings in Hong Kong.
Macroeconomic Environment: The prospectus describes a growing and dynamic respiratory drug market, with strong regulatory and funding support in China and Hong Kong. No negative macro indicators are highlighted that would dampen sector sentiment at the time of listing.

Risk Factors: Quantified and Qualitative Exposures

Major Risks Disclosed:

• Regulatory risk (pricing, reimbursement policies such as VBP and NRDL in China)
• Intellectual property protection and litigation risk
• Reliance on key products (notably CF017) and concentration risk
• Competition from domestic and global pharma companies
• Research and development risk (pipeline execution, approval delays)
• Currency and FX risk (RMB-linked, with some global exposure)
• Supplier and customer concentration not quantified, but acknowledged as a potential risk
• Changes in industry regulations and compliance obligations
• General market and economic volatility

No explicit quantification of customer or supplier dependence, but management notes exposure to sector-wide and company-specific risks [[56]] [[57]].

Growth Strategy and Expansion Plans

Use of IPO Proceeds:

• 40% to fund ongoing R&D (HK\$210.2 million)
• 30% to expand manufacturing capacity and facilities (HK\$157.6 million)
• 20% to strengthen commercialization (HK\$105.1 million)
• 10% for general working capital (HK\$52.5 million)

Expansion Plans: The company aims to accelerate new product launches, add manufacturing capabilities, and pursue commercialization in new geographies. New product and market entries are key priorities, supporting robust pipeline execution [[33]].

Ownership Structure and Lock-up Arrangements

Pre-IPO and Post-IPO Holdings: Major shareholders include Suzhou Pyramid, Suzhou Meizhongrui, and others, with significant H Shares converted from unlisted shares to meet free float requirements. All pre-IPO investors and major shareholders are subject to a 12-month lock-up period [[220]].

Employee Incentives: An Employee Incentive Scheme is in place, with detailed terms provided in the statutory appendices. This includes share allocations for key personnel and management [[33]].

Valuation and Peer Comparison

Valuation Metrics:

• Implied market cap (post-IPO): HK\$6,076.7 million
• Unaudited pro forma adjusted net tangible assets per Share: HK\$3.56 (as of March 31, 2025) [[33]]

No P/E, P/B, EV/EBITDA, or direct peer comparison tables are disclosed in the prospectus. The document does not list peer symbols or sector comparables nor provide dividend yields or ROE/ROA figures for industry benchmarking.

No information on other concurrent IPOs or 10-day sector performance tables is disclosed in the prospectus.

Research Coverage and Analyst Opinions

Apart from industry analysis provided by Frost & Sullivan (F&S), no explicit sell-side analyst opinions, price targets, or external research are disclosed.

IPO Allotment and Listing Outcome

The prospectus outlines the timing and channels for allocation results (October 6, 2025 online and by phone), but does not provide final subscription or allocation data by tranche. No inferences can be made about listing day allocation strength from the available data [[5]].

Listing Outlook: Performance and Valuation Inference

Based strictly on the disclosed facts:

• The company demonstrates strong revenue growth, healthy gross margins, and a robust pipeline, with net profits in 2023 and 2024 after a loss in 2022.
• The large, reputable syndicate and clear use of proceeds toward growth signal institutional confidence.
• The inhalation drug sector is expanding, with CF PharmTech holding a leading position in China’s largest inhalation drug segment.
• Lock-ups for pre-IPO and major shareholders, plus broad free float, should support price stability.
• No explicit oversubscription or book coverage data is available; thus, listing day performance can only be inferred as likely strong, especially if sector sentiment remains positive and institutional support is robust.

Estimated First-Day Range: Based solely on the prospectus, CF PharmTech appears worth subscribing for long-term growth investors, with a probable first-day trading range at or above the offer price of HK\$14.75, assuming no negative macro shocks or sector reversals.

Prospectus Access

The full document is available at:
www.hkexnews.hk
www.cfpharmtech.com

How to Apply for the IPO

Application Channels:

• Online via the White Form eIPO service at www.eipo.com.hk
• Electronically through the HKSCC EIPO channel via brokers or custodians who are HKSCC Participants (using the FINI system)

Application period runs from 9:00 a.m. on September 26, 2025 to 12:00 noon on October 2, 2025. Applicants must be 18 years or older and have a Hong Kong address for White Form eIPO. No physical application channels are available; all applications must be submitted electronically [[472]].