Mandi, a consumer healthcare arm backed by Alibaba Health, filed for an IPO in Hong Kong, focusing on its minoxidil hair-loss products. The deal aims to leverage the booming Hong Kong market with $73 billion in equity activity this year. Mandi did not disclose its fundraising target or listing timeline, appointing Huatai International as the sole sponsor.

The capital raised will support product expansion, digital operations, marketing, and early-stage research. 3SBio owns 87.16% of Mandi, with Alibaba Health holding 2.65%, while other shareholders include Hero Grand Management and GL Wecan Investment. The spin-off will see 3SBio fully exit its stake through an in-specie distribution.

Mandi’s flagship products dominate the Chinese hair-loss market, with a 57% share. The company also develops skin-health and weight-management products, including innovative drugs like clascoterone cream for acne and semaglutide injection for weight management. Both drugs are in phase III clinical trials in China. Mandi warned of risks from failed product development or market acceptance.

Mandi reported a 14.5% increase in net profit in 2024, benefiting from China’s growing consumer healthcare market. The industry is projected to reach 4.06 trillion yuan by 2035, attracting competition from over 60 late-stage diabetes drugs in China. Innovent Biologics was the first domestic firm to market a weight-loss drug in China.

Read more at Yahoo Finance: 3SBio spin-off Mandi banks on hair-loss and weight-loss drugs in Hong Kong IPO bid