On July 9, 2015, Guangzhou Darui Biotechnology Co., Ltd.(“Darui Biotechnology”, stock code: 832705), a subsidiary of DAAN Gene, was successfully listed on the National Equities Exchange and Quotations (“NEEQ”) system. At the same time, Darui Biotechnology issued shares to chosen investors, raising RMB277,777,769.00. A Dacheng team led by Guangzhou-based senior partner Zhao Ya advised the company on the NEEQ listing and the private placement. The team also included associates Yan Shuang and Duan Haiying.

Darui Biotechnology, a subsidiary of publicly listed DAAN Gene (SZ. 002030) is engaged in the R&D, manufacture, and sale of diagnostic reagent and equipment for quantitative immunoassay and prenatal and postnatal care. The high-throughput gene sequencing technology (also known as “next-generation sequencing technology”) developed jointly by Darui Biotechnology and DAAN Gene is the most advanced technology mastered by only a small number of gene technology developers such as DAAN Gene and BGI. The industrialized application of the technology helps win a large market share for the company in prenatal and postnatal diagnosis and screening. While the company was listed, its privately placed shares were priced as high as RMB79, and the company was valued at RMB2.7bn. Subscribers are mainly well-capitalized institutional investors. The listing of Darui Biotechnology, a spin-off of DAAN Gene, is a successful attempt at the NEEQ system. It forecasts DAAN Gene’s ambitions of securitizing industrial investment allocated to the “big health” sector.

The NEEQ listing and private placement of Darui Biotechnology involved complicated legal issues, including shareholding entrustment, horizontal competition, and school asset management. The attorneys worked closely with the securities trade GF Securities in communicating with the NEEQ system and facilitated the eventual listing and private placement. Their efforts were highly commended by the client and other intermediaries.