3SBio spin-off Mandi banks on hair-loss and weight-loss drugs in Hong Kong IPO bid

Core Viewpoint - Mandi, a consumer healthcare arm backed by Alibaba Health, is spinning off from 3SBio and has filed for an IPO in Hong Kong, focusing on its leading minoxidil hair-loss products to attract investors [1]. Group 1: IPO Details - Mandi has not disclosed its fundraising target or listing timeline, and has appointed Huatai International as the sole sponsor for its listing [2]. - The capital raised from the IPO is expected to fund product expansion, refine the digital operating model, strengthen marketing, and support early-stage research and development [3]. Group 2: Ownership Structure - 3SBio currently holds an 87.16% stake in Mandi, while Alibaba Health owns 2.65% [3]. - The spin-off will allow 3SBio to completely exit its stake in Mandi through an in-specie distribution to existing shareholders, while Mandi will raise capital through a global offering of new shares [4]. Group 3: Financial Background - In November, Mandi closed a Series A financing round worth approximately US$50 million, led by Alibaba Health and other investors [5]. Group 4: Market Position - Mandi's flagship products, based on minoxidil, target Chinese consumers under 35 and have been the top seller in China's hair-loss drug market for 10 consecutive years, capturing a 57% market share in 2024 [6]. - Mandi is also developing clascoterone cream, an innovative acne treatment described as the world's first topical androgen receptor inhibitor for acne vulgaris [7].