China Securities Journal Golden Bull | Latest Update on the STAR Market Growth Tier! Healthgen Biotech Launches Issuance

On the evening of September 22, Wuhan Healthgen Biotechnology Corp. (Healthgen Biotech) disclosed its prospectus, issuance arrangements, and preliminary inquiry announcement on the website of the Shanghai Stock Exchange (SSE), officially launching its issuance. Reportedly, Healthgen Biotech is the first company to have passed the procedure of review and registration under the relaunched fifth set of listing standards for the STAR Market. With the official commencement of issuance, it has also become the first newly registered company in the STAR Market Growth Tier to initiate its offering.

Since June this year, when the China Securities Regulatory Commission (CSRC) issued the Opinions on Establishing the STAR Market Growth Tier to Enhance Institutional Inclusiveness and Adaptability (referred to as the STAR Market "1+6" Reform), the STAR Market has accepted 15 new IPO applications, including 4 from unprofitable companies and 1 applying the fifth set of listing standards. Industry insiders believe that Healthgen Biotech's launch of its issuance is an important embodiment of the STAR Market "1+6" Reform in enhancing institutional inclusiveness and adaptability for high-quality technology enterprises. It fully reflects the policy orientation of respecting the laws of scientific and technological innovation, supporting the development of quality technology enterprises, and better serving new quality productive forces.

At the same time, under the pilot arrangements set out in the Eight Measures for Deepening the Reform of the STAR Market to Serve Scientific and Technological Innovation and the Development of New Quality Productive Forces, Healthgen Biotech is also the first company to adopt a differentiated offline offering lock-up and allocation mechanism. According to the announcement documents disclosed by Healthgen Biotech, the overall offline lock-up ratio will be no less than 40%. Three differentiated lock-up tiers have been set for investor quotations, and the allocation ratio for investors in the highest lock-up tier will be no less than 9 times that of those in the lowest lock-up tier.

Market observers noted that in March this year, the SSE revised its rules on offering and underwriting, clarifying that unprofitable companies may adopt an agreed lock-up mechanism. Under this mechanism, offline investors voluntarily submit subscription bids and undertake commitments and obligations for higher lock-up ratios and longer lock-up periods, in return for a larger allocation of new shares. This approach is designed to encourage more professional institutions that have strong conviction and long-term investment capability to play a greater role in IPO pricing, thereby promoting more reasonable pricing of new shares.

According to further information obtained by a reporter from China Securities Journal · CSJ Golden Bull, the various tasks for the listing and offering of the first batch of newly registered companies in the STAR Market Growth Tier are progressing steadily and in an orderly manner. Securities companies have been organizing investors to sign risk disclosure statements for participating in Growth Tier trading. At present, 5 million investors have been granted trading access to the Growth Tier. The SSE has completed full-network clearance testing of its technical systems, which have recently been rolled out, and the newly registered companies in the Growth Tier are now ready for offering.