Shandong Lubachem terminated the IPO

On June 27, the news of the Shanghai Stock Exchange showed that the Shanghai Stock Exchange terminated its main board listing audit due to the withdrawal of Shandong Lubachem and its sponsor Minsheng Securities Co., LTD.

Data show that Lubachem was established in December 1997, the registered capital of 390 million yuan, is a collection of pesticide synthesis, fine chemical products manufacturing, formulation processing, product development and sales in one of the group agrochemical enterprises.

At present, the main products of Lubachem can be divided into three categories: intermediates, technicals and formulation, which can be divided into pyridine and non-pyridine according to chemical structure.

LubaChem in the pyridine industry chain has completed the layout of more products, mainly including Pyridine, 3-Methyl-pyridine, Tetrachloropyridine, Pentachloropyridine and other intermediates and Fluroxypyr, Diquat, Chlorpyrifos, Haloxyfop-P and other technicals and formulations.

At present, Lubachem have opened up the whole industrial chain of products such as Fluroxypyr and Chlorpyrifos; The 22,2'-Bipyridyl under construction will open up the whole industrial chain of the existing superior pesticide products; The 2-Chloro-5-trifluoromethylpyridine under development will enhance the market competitiveness of Haloxyfop-P and Fluopicolide, and will be used in the production of Fluopicolide products under development.

In addition, the non-pyridine series of products mainly include Malathion, Hexaflumuron and other technical products and Glufosinate ammonium, Glyphosate and other formulation products.

In 2021, according to the statistics of the China Pesticide Industry Association, the production of Fluroxypyr acid, Haloxyfop-P, Malathion and Diquat ranked first in China, and the production of Tetrachloropyridine and Chlorpyrifos ranked second in China. The production and sales of Pyridine, 3-Methyl-pyridine and other intermediate products rank in the forefront of the country, and it is the first enterprise to achieve mass production of 10,000-ton chlorinated pyridine devices in China.

It is understood that on March 1, 2023, the IPO of Lubachem was accepted, and on June 29, 2023, inquiries were made. According to the prospectus, this IPO, Lubachem intends to apply for the public issuance of RMB common stock A shares no more than 8000.00 shares, and the total amount of raised funds is proposed to be invested in the following projects according to the order of priority:

Among them, the annual output of 2000 tons of Fluroxypyr high efficiency and low toxicity pesticide project implementation main body is a wholly-owned subsidiary of Lubachem, the total investment is 172.2400 million yuan, the proposed investment of raised funds is 135.05 million yuan, the construction period is 1 year, the main production of Fluroxypyr technical, the production capacity is 2000 tons/year.