2024.08.26
On August 26, 2024, Shanghai Xiao Fang Pharmaceutical Co., Ltd. (603207) ("XF Pharmaceutical") was listed on the Main Board of the Shanghai Stock Exchange. The company issued 40 million new shares at RMB 12.47 per share in the IPO, raising approximately RMB 500 million. The stock price surged more than 200% on the first day.
Established in August 1993, XF Pharmaceutical specializes in the research, production and sales of topical medicines. The company's mission is to provide a wide range of high-quality, effective topical medications that families can rely on. The "Xinlong" trademark, created and used by XF Pharmaceutical, is a well-known brand in Shanghai with high market recognition. The company's various topical medication products have held a leading market share in China for many years.
As the issuer's legal counsel, JunHe provided comprehensive legal services for XF Pharmaceutical's IPO. We assisted the company in addressing significant legal matters such as continuous legal compliance, equity incentives, financing, shareholding reform, and IPO application. The listing process witnessed major reforms in China's policies on the capital market.
In March 2023, a registration-based reform was implemented and XF Pharmaceutical became one of the first companies to transfer from the China Securities Regulatory Commission to the Shanghai Stock Exchange for review.
From August 2023, IPO reviews were gradually tightened in the domestic capital market, imposing higher requirements on companies intending to go public. XF Pharmaceutical became one of the first companies to receive official IPO registration approval from the China Securities Regulatory Commission after the policy tightening.
In March 2024, the China Securities Regulatory Commission issued a series of new regulations, including the Opinions on Tightening Scrutiny Over Initial Public Offerings and Improving the Quality of Listed Companies from the Source (Trial Implementation) (commonly known as the "315 New Rules"). In April 2024, the State Council issued Several Opinions on Strengthening Regulation, Preventing Risks, and Promoting High-Quality Development of the Capital Market (commonly known as the "New Nine Articles"). XF Pharmaceutical was the first company in the pharmaceutical sector to go public after the implementation of these new regulations.
Throughout these policy reforms, JunHe provided effective legal analysis and feedback in accordance with these new policies, adjustments and regulatory concerns. Our meticulous and professional legal services earned high recognition from XF Pharmaceutical.
The JunHe team was led by partner JIANG, Wenjun (Kelvin) with support from partner SHEN, Na for the internal control.
