Insilico Medicine Raises More Than US$290 Million in Hong Kong’s Largest Biotech IPO of 2025
AI-driven drug discovery company Insilico Medicine raised approximately HKD 2.28 billion (more than US$290 million) in its initial public offering on the Hong Kong Stock Exchange today, marking the largest biotech IPO in the city this year.
Trading under the stock code 03696.HK, Insilico became the first company focused on AI-powered drug discovery to go public on the Main Board under Chapter 8.05 of the HKEX listing rules. Unlike the more commonly used Chapter 18A for pre-revenue biotech firms, Chapter 8.05 requires revenue or profit thresholds, suggesting a differentiated positioning among biotech listings.
The global offering comprised 94.69 million shares, with strong demand from both retail and institutional investors. The Hong Kong public offering was oversubscribed by approximately 1,427 times, locking in more than HKD 328 billion in total subscriptions. The international placement was also oversubscribed by over 26 times, according to the company.
Founded in 2014, Insilico operates a dual model: developing its own pipeline of drug candidates while also licensing its proprietary AI platform, Pharma.AI, to other pharmaceutical companies. The platform covers the full spectrum of drug discovery, from novel target identification to molecular design and preclinical development.
The company’s most advanced program, Rentosertib (ISM001-055), a potential treatment for idiopathic pulmonary fibrosis, has completed Phase IIa trials. Results have been published in Nature Biotechnology and Nature Medicine. In total, Insilico reports a portfolio of more than 30 active programs, with 10 IND clearances and 7 clinical-stage assets.
The IPO attracted 15 cornerstone investors, including Eli Lilly, Tencent, Temasek, Schroders, UBS Asset Management, Oaktree Capital, and others. Both Lilly and Tencent participated as cornerstone investors in a biotech IPO for the first time.
Insilico also operates two automated wet-lab facilities (Life Star 1 and Life Star 2), which are integrated with its AI systems to streamline experimental validation and data generation.
According to its prospectus, Insilico plans to allocate approximately 48% of the IPO proceeds to clinical R&D, 20% to early-stage discovery, 15% to AI model development, 12% to lab expansion, and 5% to general corporate use.
The listing comes amid growing public market interest in companies that combine machine learning infrastructure with drug development pipelines. Insilico’s move may serve as a benchmark for how investors are pricing AI-native biotech companies with clinical-stage programs and software licensing strategies.
Topic: Biotech Ventures
