Qilian International Holding Group Limited, a China-based pharmaceutical and chemical products manufacturer, priced its initial public offering late Monday at $5 per American depositary share.
The company sold 5,000,000 ordinary shares to raise $25 million from this offering. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 750,000 ordinary shares at the public offering price, less underwriting discounts. The ordinary shares have been approved for listing on the Nasdaq Global Market and are expected to commence trading on January 12, 2021 under the ticker symbol “QLI”.
In 2020, Chinese companies held 35 IPOs, raising $12.9 billion, despite a tumultuous year in China-U.S. relations and stricter listing requirements. Mr. Zhanchang Xin, the Chairman and CEO of QLI, told Wall Street Multimedia, “Even though Nasdaq tightened its listing rules, Qilian International raised more capital. It’s a good thing for us.”
Qilian International Holding, headquartered in Gansu, China, was founded in 2006. It focuses on the development, manufacture, marketing and sale of licorice products, oxytetracycline products, traditional Chinese medicine derivatives product, heparin product, sausage casings, and fertilizers. The Company’s products are sold in more than 20 provinces in China.
According to Qilian International’s SEC filing, the company made $5.17 million in net income on revenues of $50.37 million for the years ended September 30, 2018, and made $5.33 million in net income on revenues of $46.10 million for the years ended September 30, 2019.
Zhanchang Xin said, “With the help of the capital market after our debut on Nasdaq, we will be able to expand our business and broaden our market shares, and we aim to go into the US market as well.” Proceeds from the offering will be used for fixed asset investment in Oxytetracycline API production facilities, construction of an organic-waste treatment facility, fixed asset investment in Heparin Sodium Preparation facilities, and marketing expenses for Gan Di Xin ®.
