Beijing-based oncology biotech BeiGene ($BGNE) has priced its offer of 6.6 million American Depositary Shares at $24 each, the top of the range to take in $158.4 million in an initial public offering on the Nasdaq that should set the tone for another pending China-focused offering.
Hong Kong-based Hutchison China MediTech, or Chi-Med, in November filed an F-1 form with the U.S. SEC detailing its proposed $100 million IPO on the Nasdaq, with executive director and CEO Christian Hogg in January declining comment as the company was in a quiet period on the potential listing.
BeiGene said in a press release the underwriters for the offer are also eligible for an additional 990,000 American Depositary Shares, equivalent to 13 ordinary shares, at the offering price set on Feb. 3, with the firm listed as BGNE on the exchange.
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| BeiGene CEO John Oyler |
Goldman, Sachs & Co., Morgan Stanley and Cowen and Company are acting as joint book-running managers. Baird is acting as co-manager of the offering, according to the press release.
The IPO broke a January drought of offers in the U.S. amid significant global market turmoil. In its first day of trading, the American Depositary Shares closed up 19.25% to $28.62.
It also marked a return of China-based drug companies to markets that witnessed Shanghai-based WuXi PharmaTech ($WX) leave the New York Stock Exchange in a management-led buyout completed in December, as well as plans by Shenzhen-based Mindray ($MR) to do a similar deal and leave the Nasdaq and Beijing-based and Nasdaq-listed Sinovac ($SVA) recently announcing a management-led buyout offer.
At the same time, in the past year, companies such as 3SBio and Simcere that were formerly listed in the U.S. and taken private by management came roaring back to the public markets via the Hong Kong Stock Exchange.
In January, BeiGene said the U.S. FDA has given the nod for clinical development of oncology mAb BGB-A317, marking the first biologic candidate from the company to head for U.S.-based trials.
For Chi-Med a Nasdaq listing would widen a geographic spread that already includes a London listing.
- here's the release