Russian biotechnology company, Human Stem Cell Institute or HSCI (in Russian: Институт Стволовых Клеток Человека) has completed a $5 million (142.5 million Rubles) initial public offering (IPO) of shares on the Innovation and Growth Companies Sector (Рынок Инноваций и Инвестиций или РИИ) of MICEX Stock Exchange today, according to market reports. It was the first ever Russian biotech IPO.
The company sold to investors 15 million newly issued shares (or 20% of the company’s share capital) at 9.5 Rubles per share. HSCI’s market capitalization is about $25 million (712.5 million Rubles). The IPO of HSCI is managed by one of MICEX Stock Exchange’s leading share market operators, ALOR Invest.
HSCI, which holds a half of Russian stem cell bank market, plans to invest some $10 million into regional expansion, laboratory upgrade and clinical trials of biotechnology drugs in 2010-2012, of which half will be financed from own funds and the remainder will come from IPO proceeds.
Founded in 2003, Human Stem Cell Institute (HSCI) operates a leading Russian stem cell bank, Gemabank and cell technology laboratory in Moscow as well as biotechnology laboratory Simbiotec in Germany. HSCI also has offices in St. Petersburg, Russia and Ukraine.
Human Stem Cell Institute reported revenues of more than $3 million and net income of $0.2 million in 2008. The company expects its revenues will exceed $5 million and net income will reach $0.5 million in 2009. HSCI is majority ownbed by its managers: Artur Isaev, Andrey Isaev, Alexander Prikhodko and First International Investment Group.