XTALPi QUANTUMPH-P (02228.HK) was successfully listed on the main board of the Hong Kong Stock Exchange today, with CITIC Securities as the sole sponsor, officially becoming the "first stock of Hong Kong Specialist Technology".
XtalPi is an innovative R&D platform based on quantum physics, powered by artificial intelligence and driven by robots. The company provides drug and materials science R&D solutions and services to global and domestic companies in industries such as pharmaceuticals and materials science, including agricultural technology, energy and emerging chemicals, and cosmetics, using a combination of first-principles computing based on quantum physics, artificial intelligence, high-performance cloud computing, and scalable and standardized robotic automation.
XtalPi's Hong Kong IPO introduces cornerstone investors, including Li Jiajie, chairman and managing director of Henderson Land (00012); Guosheng Capital, a mainland private equity investment company; Ginkgo Fund, an investment company owned by Gong Hongjia, known as "China's most bullish angel investor", also includes Biocytogen (02315) and Farson Capital.
XtalPi is the first company to be successfully listed under the Chapter 18C Listing Rules of the Hong Kong Stock Exchange since the entry into force of the Listing Rules for Specialist Technology Companies on 31 March 2023.
At the opening of today's market, XtalPi rose 23.11% to HK$6.50 per share, with a market capitalization of HK$22.144 billion.
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At the previous IPO press conference, Wen Shuhao, co-founder and chairman of the board of directors of XtalPi, expressed the hope that the issuance would be successful and "beautiful", that XtalPi has solid technology and an international shareholder background, and that it has the conditions to list in Hong Kong through Rule 18C. It is expected that the successful listing of XtalPi will attract more and more good technology companies and even great technology companies to list in Hong Kong and grow under the 18C rule.
XtalPi has pioneered the application of quantum physics-based computing, artificial intelligence, and automation technologies and drug discovery expertise to the design and discovery of drugs and new materials, including biomaterials, novel compounds for agricultural technology applications, novel chemical surfactants and catalysts, as well as cosmetics and healthcare products. According to Frost & Sullivan, XtalPi is a market pioneer in applying AI-enabled crystal structure prediction to drug and materials science R&D.
According to reports, XtalPi participated in the global crystal structure prediction blind test held by Pfizer in 2016 and achieved accurate prediction, thus reaching a long-term strategic partnership with Pfizer. As of May 29, 2024, XtalPi has achieved a 100% success rate across all crystal structure prediction projects for small molecules, and the company's integrated technology platform has leveraged more than 700 core hours of cloud computing and has contributed to more than 500 projects, including drug discovery and solid-state R&D projects.
For example, by combining a prediction algorithm based on quantum physics calculations with robotic wet lab experimental validation, XtalPi helped Pfizer accelerate the development of Paxlovid, the world's first FDA-approved oral therapeutics for COVID-19, by working closely with the Pfizer team to complete the mutual validation and exact matching of the drug crystal structure prediction and experimental results in just six weeks, enabling subsequent development and production.
In just 4 months, XtalPi and its collaborators have successfully developed a novel bio-based furan surfactant that is superior to commonly used petroleum-based surfactants. At present, the company is developing automatic synthesis technology for petrochemical products and new materials for electric vehicle batteries. In addition, XtalPi is partnering with a top university to automate battery R&D, with a focus on automating battery electrolyte formulation and performance testing.
Wen believes that listing in Hong Kong through Rule 18C is "the right time" for XtalPi. Tianshi refers to the overall situation of the current capital market, which is a unique opportunity for the development of the company's perfect capital market; The geographical advantage is that XtalPi is located in the Greater Bay Area, which facilitates Shenzhen-Hong Kong cooperation; He refers to the overall view of the company's team is in the best state after the run-in.
XtalPi was founded in 2015 by three MIT PhDs, Jeremy Wen, Ma Jian and Lai Lipeng. Since its establishment, the company has conducted a total of 8 rounds of financing, the last of which was completed in July 2021, with a post-investment valuation of US$1.968 billion (approximately HK$15.35 billion). Advanced technologies have attracted private equity and strategic investors, many of whom are leading global sophisticated investors.
XtalPi's pre-IPO investors were star-studded, including leading senior independent investors including Tencent (00700), Sequoia, Wuyuan Capital, etc., holding 13.66%, 8.25% and 7.95% of the shares respectively. In addition, Alphabet and SoftBank Group also hold 0.91% and 2.92% respectively.
Since its establishment, XtalPi has been serving and cooperating with many global biotechnology and pharmaceutical conglomerates, such as Pfizer, Johnson, Merck KGaA, Chia Tai Tianqing Pharmaceutical, and Daewoong Pharmaceutical.
According to Frost & Sullivan, as of the Latest Practicable Date, the Company has served more than 300 biotechnology and pharmaceutical companies and research institutions worldwide, including 16 of the world's top 20 biotechnology and pharmaceutical companies (in terms of 2022 revenue). The company has established strategic partnerships with many well-known biotechnology and pharmaceutical conglomerates, national research institutions and government departments around the world, including Pfizer, Changjiang Life Sciences and Singapore's National Drug Design and Discovery Platform (EDDC).
As of December 31, 2023, XtalPi raised approximately US$732 million through private equity financing from a number of leading global financial and strategic investors, ranking first among all AI-enabled drug discovery companies in the world in terms of total funds raised through private equity financing as of December 31, 2023, according to Frost & Sullivan.
XtalPi has built a comprehensive technology platform that integrates high-performance cloud-enabled calculator-like tools, including quantum physics-based first-principles computing and artificial intelligence for dry lab calculations and evaluations, as well as wet lab experiments for robotic automation. According to Frost & Sullivan, XtalPi is one of the few leading drug and materials science R&D companies based on quantum physics and artificial intelligence, and has established a platform with iterative feedback between quantum physics, AI-enabled dry labs and scalable, standardized, and automated robotic wet lab capabilities.
Looking ahead, XtalPi plans to expand its intelligent automation solutions, aiming to leverage its AI and automation capabilities and expertise to empower automated robotics labs as experimental infrastructure to deliver stable and reliable data and results in a more efficient, accurate and scalable manner. In addition, leveraging its strong scientific research capabilities, integrated technology platform and domain expertise, the company has initiated the XtalPi R&D solution project to explore other high-value areas that rely on advanced technologies, such as materials science (including agricultural technology, new chemicals, and energy and cosmetics), thereby diversifying its services and achieving business growth.
It has been revealed that XtalPi has established a joint venture and launched a UpChemist.Al platform through the joint venture to expand its business into the field of materials science research and development by leveraging powerful quantum physics-based computing, artificial intelligence and intelligent automation capabilities.
In addition, XtalPi aims to expand its global business and achieve steady growth. The company has set up an Innovation Demonstration Lab in Boston, Massachusetts to showcase its R&D capabilities, and is expected to provide solutions and services in the local U.S. market. XtalPi plans to establish a full-scale robotics lab ("Somerville Robotics Lab") in Somerville, Massachusetts, in the third quarter of 2024 to serve its global customers and expand its existing collaborations with North American business partners.
The Somerville Robotics Laboratory is expected to serve as the company's U.S. R&D center and will work closely with research institutes, including several top universities in Boston, Massachusetts. The company plans to expand the Somerville Robotics Lab to approximately 500 square meters over the next three years to increase its presence in North America.