China biotech company targets $414m in Hong Kong IPO
Shanghai Junshi Biosciences attracted by new rules allowing biotech firms with no revenue or profit to list on city’s stock market
Hong Kong — Chinese biotech company Shanghai Junshi Biosciences is seeking up to $414m in a Hong Kong initial public offering (IPO), making it the latest company to take advantage of new listing rules to attract early-stage drug developers. Hong Kong’s new rules allow biotech firms with no revenue or profit to list on the city’s stock market, a change designed to lure start-ups away from other financial centres such as New York. The new regulations were introduced in April. Junshi Biosciences is selling 158.9-million shares at a price range of 19.38 to 20.38 Hong Kong dollars ($2.48-$2.61), according to a term sheet seen by Reuters. The company could raise as much as $476m if a greenshoe, or over-allotment option, is exercised within the first month of trading. Junshi Biosciences did not respond to a request to comment outside regular business hours. The performance of shares listed under the new regime has been patchy. Ascletis Pharma, the first company to list under the new regula...
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