Voronoi, IPO Price Set at 40,000 Won... "Promise of More Than Two Technology Exports Annually"

[Asia Economy Reporter Park Hyungsoo] Global drug design specialist company Boronoi has set its public offering price at 40,000 KRW.

Boronoi announced on the 13th that after conducting demand forecasting for domestic and international institutional investors over two days from the 8th to the 9th, it finalized the public offering price at the lower end of the desired range (40,000 to 46,000 KRW), at 40,000 KRW.

A total of 150 institutions participated in the demand forecast, recording a competition rate of 28.35 to 1. The public offering amount is 52 billion KRW, and the market capitalization after listing is approximately 505.5 billion KRW.

Among the 27.65 million shares involved in the demand forecast, 57% were allocated to overseas institutional investors. This demonstrates the high interest of foreign investors in Boronoi’s future growth potential. This appears to be the result of Boronoi raising its recognition overseas through three technology export deals. Leading long-term institutional investors from both domestic and international markets participated in the demand forecast and received allocations.

A representative from Korea Investment & Securities, which is managing the listing, explained, "Some domestic and foreign institutional investors highly evaluated Boronoi’s technological capabilities and requested large allocations, which were granted. Considering the recent unstable stock market and the weakened investment sentiment toward bio companies, we decided the public offering price at a market-friendly level."

Boronoi plans to use the funds raised through its initial public offering (IPO) for research and development expenses and operating capital. The company aims to establish a foundation for sustainable growth by generating numerous excellent pipelines annually.

CEO Kim Daegwon of Boronoi stated, "We will expand our research and development capabilities and increase our clinical pipelines following the listing. We will keep our promise of more than two technology exports each year and repay with higher corporate value." Boronoi is currently negotiating technology export contracts with global pharmaceutical companies.

Previously, based on its unique drug design technology, Boronoi developed multiple substances with outstanding selectivity and blood-brain barrier penetration technology, and from 2020 to last year, signed a total of four technology transfer contracts. The track record amounts to 2.1 trillion KRW, the largest scale among technology-specialized IPO companies in history.

Boronoi will reveal preclinical research results of an EGFR C797S non-small cell lung cancer treatment with 100% brain penetration for the first time at the American Association for Cancer Research (AACR) in October. In the first half of next year, it will also announce the global Phase 1 clinical trial results of its first technology-exported substance, an EGFR Exon20 INS non-small cell lung cancer treatment with 77% brain penetration.

Boronoi will conduct subscription for general investors over two days from the 14th to the 15th. It is scheduled to be listed on the KOSDAQ market on the 24th. Korea Investment & Securities and Mirae Asset Securities will jointly manage the listing.