Ascletis Pharma issues IPO, GIC set to invest $75mn
Ascletis Pharma, a Chinese biotech, will be the first company of its kind to file for an IPO in Hong Kong, which is set to be worth up to $457mn.
The company has secured commitment to invest from Singapore’s sovereign wealth fund, GIC (Government of Singapore Investment Corporation), which will be a cornerstone investor. GIC will contribute $75mn to the IPO, purchasing 20% of Ascletis’ shares, and will not be able to sell this stake for at least six months.
Altogether, a total of 224.1mn shares are being offered which will be worth between $1.53 and $2.04 each, putting the final figure of the IPO at between $343mn and $457mn.
Post flotation, the pharmaceutical firm is set to be valued at over $2bn, according to the South China Morning Post.
Proceeds will be spent on funding clinical trials, research and development of a new pipeline of drugs, and commercialisation of the drugs Danoprevir and Ravidasvir.
Danoprevir is the first cure for hepatitis C to have been developed by a Chinese company.