Giant Biogene raised $70 million in its Hong Kong initial public offering. According to sources, the Xian-based company originally aimed to raise up to $500 million but scaled back the deal because of market volatility. The company ultimately priced shares on the low end at HK$24.30.

WHO: Giant Biogene, based in Xian, Shaanxi province, was founded in 2002 with a patent for technology to produce recombinant collagen. The business launched its first brand in 2009 and now manufactures more than 100 products from eight brands expanding to areas including medical gels and supplements. Its hero beauty mask products are Kefumei and Kefuxin, sold on e-commerce platforms such as JD.com Inc.

WHY: The company plans to use the proceeds from the IPO to boost its R&D capability, expand its manufacturing capacity, and enhance its sales and distribution network.

DETAILS:

• Giant Biogene originally aimed to raise up to $500 million but scaled back the deal because of market volatility, pricing shares on the low end at HK$24.30, raising $70 million in a Hong Kong initial public offering.
• The retail portion of the IPO was twice oversubscribed by investors, while the institutional part of the deal was 4.22 times oversubscribed, according to the company's filings.
• Fan Daidi, 56, owns almost 59 percent of Giant Biogene. Her husband, Yan Jianya, the other co-founder and chairman of the company, also chairs Xi'an Triangle Defense Co. and holds a $55 million stake in the Shenzhen-listed maker of parts for the aerospace and defense industries.
• Giant Biogene is also the largest collagen-based professional skin treatment product company by sales in China for three consecutive years since 2019, according to its prospectus. The company posted retail sales of 6 billion yuan (US$842 million) in 2021, making it the second-largest professional skincare company in China.
• Online sales at Giant Biogene surged 43.6 percent in the first five months of this year, compared with 41.5 percent in 2021 and 16.5 percent in 2019.
• Giant Biogene's adjusted net profit rose 2.9 percent year on year to 851.3 million yuan in 2021, slowing from a 43.8 percent year-on-year jump to 827.1 million in 2020.