31 July, 2018

Ally Bridge Portfolio News – ABG Among Cornerstone Investors in US$933mn BeiGene Secondary Hong Kong Listing

Bloomberg / July 27, 2018, 10:48 PM GMT+8

BeiGene Ltd., a cancer drug developer, is seeking as much as HK$7.32 billion ($933 million) through a secondary listing in Hong Kong after debuting in New York in 2016.

The biotech firm is offering 65.6 million shares at HK$94.40 to HK$111.60 apiece, according to a prospectus released on Friday. Baker Bros Advisors, Hillhouse Capital Management, GIC Private Ltd. and Ally Bridge have agreed to be cornerstone investors and will buy 19.8 million shares in the offering.

First-time share sales from health-care companies have raised $20.5 billion globally in the past 12 months, compared with $18.5 billion in the previous period, data compiled by Bloomberg show. BeiGene has done three share placements since its New York IPO, including its $800 million stock offering in January.

BeiGene shares have increased more than sevenfold since listing in 2016. Proceeds from the share sale will go into research and commercialization of three developing drugs, early research and expanding the company’s portfolio and general working capital, the prospectus shows.

BeiGene aims to price the share sale around Aug. 2 and no later than Aug. 7. The company expects it to begin trading on Aug. 8.

The company reported a net loss of $105 million in the quarter ended March, about double the loss during same period last year, according to the prospectus.

Morgan Stanley and Goldman Sachs Group Inc. are joint sponsors for the Hong Kong offering. Credit Suisse Group AG, CLSA Ltd., Deutsche Bank AG and China Renaissance are also working on the listing.