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Beigene Receives Approval for $3 Billion Shanghai STAR Listing

Published 07/01/2021, 11:23 PM
Updated 07/01/2021, 11:29 PM
© Reuters
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By Gina Lee

Investing.com – Beigene Ltd. has received approval for an IPO on the Shanghai Stock Exchange’s Science and Technology Innovation Board, or STAR market, estimated to be worth around $3 billion.

The listing on the Chinese board would add to the company’s listings in the U.S. and Hong Kong, with a successful listing making Beigene the first biotech company to be listed in all three markets.

The STAR Market’s listing committee said that the proposed IPO met the market’s conditions and requirements for information disclosure, but stopped short of providing a timetable for the next steps. However, it added that Beigene will need to provide a further explanation on how it will adapt to the Chinese A-share market as well as how it will protect Chinese shareholders.

Beigene raised $182 million in Nasdaq in 2016 and $902 million in Hong Kong two years later.

The company’s Hong Kong shares (HK:6160) slid 2.75% to HK$ 205.40 ($26.45) at 11:18 PM ET (3:18 GMT), despite gaining more than 19% so far in 2021. Meanwhile, its U.S. shares (NASDAQ:BGNE) rose 1.88% to $349.65, and are up more than 31% in 2021.

China’s National Drug Reimbursement List, released in December 20202, included three Beigene drugs, including its Bruton's tyrosine kinase inhibitor Brukinsa.

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