Reborn in America, I'm serious about making money.

Shanghai Dahua Pharmaceutical Group has more than 40 pharmaceutical production bases spread across all provinces, municipalities and autonomous regions in mainland China. These bases were either acquired or established in the last decade, and their achievements are remarkable.

However, in order to expand these pharmaceutical manufacturing companies and enhance their competitiveness, expansion is necessary. Expansion naturally requires financing, and the best way to raise funds is to go public. For the subsidiaries of Shanghai Dahua Pharmaceutical Group, Hong Kong is the first choice, as they have overseas financial connections, which they will naturally take advantage of.

Dahua 36 is a pharmaceutical company located in Zhuhai. Founded in 1996, it mainly produces injections, antibiotics, cold medicines, gastrointestinal medicines, painkillers, cardiovascular and cerebrovascular drugs, metabolic drugs, and oncology drugs, totaling more than 60 kinds of drugs in seven major categories. It also owns a 100-hectare production base, making it arguably the leading enterprise in the area.

When the factory was built, nearly half of the graduates from Dahua Medical College were sent here. It can be said that the first batch of people have now become managers in various positions or at least store managers of more than three pharmacies.

Now, this pharmaceutical company is going to have an IPO and list on the Hong Kong Stock Exchange.

It's nothing new for mainland companies to list in Hong Kong. Many mainland companies have listed in Hong Kong, and most of them are high-quality companies. They have also created several billionaires. Even the home appliance chain giant Guomei, which will go bankrupt in the future, was listed in Hong Kong through a backdoor listing.

"A pharmaceutical company estimated at HK$7 billion, are they really that shrewd?!"

A seasoned Hong Kong stock market investor saw Dahua 36's IPO announcement, which stated that all shares would be underwritten through overseas securities firms. The company planned to raise HK$3 billion through the IPO, which would be used to acquire patents, expand production lines, and increase revenue.

"Don't underestimate this company. Its parent company is Shanghai Dahua Pharmaceutical Group. They have distribution channels and networks, so they don't have to worry about sales."

"A gross profit margin of 30%, a net profit margin of 10%, and a return on share of 4%-6%—that's way too low!"

"What do you want? This is much better than putting money in the bank."

The two's conversation attracted the attention of those nearby, who then joined in.

"You don't understand, do you? Besides food and water, the only thing people can't live without is medicine. In a living environment like that on the mainland, medicine is indispensable. Moreover, pharmaceuticals have anti-inflationary properties. I have high hopes for this company."

What he meant was that some things might not be reported on the mainland, but they would be reported in Hong Kong. Just like the cheese incident last time, it didn't even cause a ripple on the mainland, but it caused a huge uproar in Hong Kong.

The main reason is the health benefits of food. They feel that pharmaceutical companies would be good investment targets, and under such circumstances, many people are willing to participate in IPO financing.

In this round of financing, overseas financial groups underwrote the entire deal. If there are more subscribers, the price will be increased; if there are fewer subscribers, the supply will be reduced to lower the subscription ratio and create the illusion of a booming market.

The atmosphere at Dahua 36's pre-IPO roadshow was both enthusiastic and tense. The spacious conference hall was packed, with ordinary investors from Hong Kong, analysts from various securities firms, and media reporters all gathered, eagerly anticipating this important event.

Before the event started, there was a company introduction introducing the factory. When the audience saw that the factory covered 100 hectares, there was some commotion. In their opinion, this 100 hectares of land was very valuable, at least 3 billion.

The company's senior management team took to the stage with great enthusiasm, and they gave a detailed introduction to the company's core business, market prospects, and development strategy.

Through well-designed PowerPoint presentations and engaging speeches, the company showcased its strengths and potential to the audience. During the interactive session, investors actively asked questions, which the company representatives answered in detail, demonstrating their professionalism and deep understanding of the market.

During the roadshow, the company showcased its innovative products and technologies, allowing investors to experience its strength firsthand. Simultaneously, financial experts provided an in-depth analysis of the company's financial situation, giving investors a clearer understanding of its profitability and capital utilization.

At the end, the company's representatives thanked the investors and expressed their commitment to continuing their efforts to create greater value for shareholders. The roadshow concluded successfully amidst enthusiastic applause. As for what the investors thought, they didn't care, because the overseas securities firm had already guaranteed them that if the shares couldn't be sold, they would buy them all.

"Wow, they own hundreds of hectares of land in Zhuhai. Those hundreds of hectares of land are very valuable!"

"Those lands are just industrial land, so they're half the price. But they actually bought them, which makes them worth a lot of money. If the locals gave them to them for free, they would be much less valuable."

He was right. By 2014, a developer had his eye on the land and wanted to buy it. The developer had very strong connections and persuaded them to develop the site and create a new city, because the production base was too large and the urban development surrounded the entire pharmaceutical factory.

They agreed to the plan, reclaimed the land, and compensated the owner with 7.5 billion RMB, more than thirteen times the original amount. In addition, they also compensated the owner with a piece of land further away to be used as a production base.

Later, that company went bankrupt, while Dahua 36 only relocated half of its operations. Finally, Dahua acquired the other company for one million RMB, assuming its two billion RMB debt.

The first phase of that new city building sold out, but the second phase ran into financial difficulties.

It was big news at the time. When the news broke, Dahua 36's stock price in Hong Kong rose by more than 30% that day. They said they got 5.5 billion for free, and also acquired a piece of land.

As for why the relocation took so long...

Pharmaceutical companies are different from other companies. After the factory is built, it needs GMP certification. If it does not meet the standards, it cannot produce drugs. Back when Director Zheng was in charge, everything was easy to talk to.

At this time, medicine and pharmacy were separated, and pharmacies were separated from the Ministry of Health.

However, at this time, Dahua 36 did not gain the trust of these investors in Hong Kong, and the subscription rate was only five times.

But that doesn't matter. What to do? Half of it is taken out and contracted by overseas securities firms, while the other half is sold to these investors, thus achieving a tenfold increase in subscription.

Prior to this issuance, the total share capital was 3.5 billion shares. 1.5 billion shares were issued at a subscription price of HK$2 per share. After the issuance, the total share capital will be 5 billion shares.

It doesn't really matter how many people buy or sell, as long as there are buyers. It's normal for mainland stocks to be neglected, since the real estate market is booming right now, and these buyers are only interested in the hundreds of hectares of land.