Celltrion Healthcare Co., the marketing and distribution arm of South Korean biosimilar maker Celltrion Inc., saw its initial public offering (IPO) price set at 41,000 won ($36.3) apiece, the top of a price range it has sought that would make it the second largest company in the Korea’s secondary Kosdaq market.

According to Financial Supervisory Service on Monday, Celltrion Healthcare has decided to sell its shares at 41,000 won apiece after a two-day book building session held last week ahead of its IPO debut in the Kosdaq market on July 28. The price is the top end of a price band of 32,500 won and 41,000 won the company initially suggested.

Based on the price, the company is expected to rake in over 1 trillion won, becoming the first Kosdaq-listed company with IPO proceeds exceeding 1 trillion won. Celltrion Healthcare plans to use the money from the IPO in expanding its retail network and portfolio.

Once the IPO is complete, Celltrion Healthcare is expected to become the second-largest company on the country’s minor bourse with its market capitalization likely reaching 5.6 trillion won. Its parent company Celltrion currently boasts the biggest market cap of 13.57 trillion won in the Kosdaq market.

Celltrion Healthcare was established in December 1999 as a global biopharmaceutical retailer. The company holds the position as a co-developer of all products developed by Celltrion and sells them to 115 countries. It is the distributor of Celltrion’s rheumatoid arthritis treatment Remsima and hematologic cancer treatment Truxima.

In recent years, Celltrion Healthcare has enjoyed a surge in sales thanks to the rapid growth in sales of Celltrion’s flagship biosimilar Remsima that was approved in Korea and the U.S. and Truxima that was launched in five European countries including Germany.

Early this month, Celltrion Healthcare announced its aggressive goal to boost its sales to 5 trillion won by 2020. Last year, the company raised 757.7 billion won in sales, more than quadruple that of 166.9 billion won in 2014. Operating profit also jumped 414 percent to 178.5 billion won over the cited period. The company is projected to generate even more profit once it releases its new breast cancer drug Herzuma and SC version of Remsima next year.

Its shares will be offered for sale to retail investors for two days from July 19. It is offering total 24.6 million shares.

By Song Gwang-sup

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