Junshi, Latest Biotech Firm to Seek Hong Kong IPO, Expects Nearly $2 Billion Valuation

The drug developer would follow Ascletis Pharma and BeiGene Ltd. in taking advantage of new listing rules on the Hong Kong Stock Exchange.
Anna VodDec 18,2018,17:55

Shanghai Junshi Biosciences Co. Ltd. is looking to raise up to $414 million in an initial public offering in Hong Kong on Dec. 24.

The drug developer plans to sell 158.9 million shares at a range of HKD19.38 to HKD20.38 ($2.48 to $2.61), according to a report by Reuters. The pricing is expected to be announced this week.

More than half the IPO amount, $242 million, would be acquired by seven cornerstone investors.

The deal would give the six-year-old Chinese biotech company a valuation of $1.9 billion.

Junshi is the latest in a slew of biotechs taking advantage of Hong Kong’s new criteria for listing. Among those that have floated since April, when the new rules were implemented, were Ascletis Pharma (HKEX: 1672), BeiGene Ltd. (HKEX: 6160), and Hua Medicine (HKEX: 2552). BeiGene (Nasdaq: BGNE) is also listed in New York.

Junshi has not launched drug sales, though it has 13 biological drug candidates, including immuno-oncology drugs, Reuters said. It expects to commercialize in the next two years, according to the report.

CICC is underwriting Junshi’s IPO in Hong Kong, with Credit Suisse as the joint bookrunner.