China’s BeiGene raises US$903mil under new rules

HONG KONG: Chinese Nasdaq-listed biotech BeiGene Ltd has raised US$903mil after pricing its secondary listing in Hong Kong – the first under new exchange rules – near the top of an indicative range, three people close to the deal said.

The listing comes as Hong Kong works to lure overseas-listed firms to conduct secondary share offerings in the financial hub.

It is also the second listing under new rules for early-state drug developers.

Hong Kong’s stock exchange is seeking to establish itself as a financing centre for the growing number of pre-revenue drug developers.

Its efforts will pit it against Nasdaq, currently the biggest centre for biotech listings, with US$2.4bil worth of such shares sold last year, Thomson Reuters data showed.

BeiGene, which develops molecularly targeted and immuno-oncology drugs to treat cancer, is selling 65.6 million new shares, or 8.55% of its enlarged share capital, at HK$108 (US$13.76) each, close to the top of a price range of HK$94.4 to HK$111.6, the people said.

The price of its secondary listing represents a discount of 1.6% against its closing price of US$181.74 in the United States on Wednesday.

BeiGene has seen its shares jump more than seven times since raising US$158mil in its 2016 Nasdaq IPO. Each American Depository share (ADS) represents 13 ordinary shares. BeiGene declined to comment on the pricing. The people declined to be identified as the information was not public.

Four cornerstone investors - Singapore sovereign wealth fund GIC Pte Ltd, U.S. hedge fund Baker Brothers Advisors and Chinese investment firms Hillhouse Capital Group and Ally Bridge - have committed $276 million for the offering.

Under Hong Kong’s new rules, in place since April 30, biotech firms without revenue or profit can apply to list.

The first listing by Ascletis Pharma Inc under the new listing regime saw shares close flat with their IPO price on their debut on Wednesday. More than 10 biotech firms – mostly Chinese and including Innovent Biologics, backed by Singapore state investor Temasek Holdings (Pte) Ltd, and Shanghai Henlius Biotech – plan to list in Hong Kong and some have dropped US. — Reuters