Qilian goes public with a bang.
The stock market welcomes a new pharmaceutical product manufacturer from China, Qilian International Holding (QLI). On Jan. 12, 2021, the Chinese pharma product maker priced its IPO in the NASDAQ stock market. The company floated 5 million ordinary shares at a per-share offering price of $5.
Qilian had an amazing first trading day with shares price more than tripled. The trading volume was over 8 million on the first day. As we write this, QLI trading around $14.49.
Qilian International Holding (QLI) is a pharmaceutical manufacturer that focuses on the development and marketing of licorice products, traditional Chinese medicine derivatives, sausage, oxytetracycline, heparin, and fertilizer products. The Chinese firm has a marketplace across 20 provinces in China.
As the initial public offering is about, to sum up, the company expects to generate gross proceeds of $25 million. Moreover, Qilian has granted a 45-day option to the underwriters to purchase up to 750K additional ordinary shares at the IPO. The closing of the offering is expected to happen on Jan. 14, 2021, depending upon the customary closing conditions.
The company has set objectives and plans to use the offering proceeds for fixed-asset investment in Oxytetracycline API production facilities, Heparin Sodium Preparation facilities, construction of an organic-waste treatment facility, and marketing expenses for Gan Di Xin ®.
The CEO and chairman of Qilian, Xin Zhanchangsaid that the U.S. investors have shown much confidence in the company, and it’s promising for the company going forward.
He added that they will utilize global financial hubs like Wall Street and take suggestions from experts to expand their business and boost the firm’s growth.
Putting on a decent performance for the year ending September 2020, Qilian predicts its net revenue to increase by 5% to 8% year-over-year. Previously, the company reported net revenue of $27.7 million for the first half of the year 2020.
Qilian International Holding (QLI) has put on a decent start in the market and is valued at around $350 million. The management is optimistic despite going public in hostile economic circumstances. The important part is that investors are backing the stock. Moreover, the company has a solid marketplace in the global economic hub. The demand for health products is high and that’s what Qilian specializes for. So, let’s see what does QLI has to offer in the next half year—that will portray a more comprehensive image of the firm.