China DNA Firm Unit Considers $1 Billion Shanghai IPO
China DNA Firm Unit Considers $1 Billion Shanghai IPO
(Bloomberg) --
BGI Group, the world’s biggest DNA-sequencing company, is considering an initial public offering of its equipment unit on Shanghai’s Star board as early as this year, people with knowledge of the matter said.
The Shenzhen-based firm could seek to raise about $1 billion by selling shares in its subsidiary MGI Tech Co., the people said, asking not to be identified because the matter is private. BGI is working with advisers for the potential listing on China’s tech-focused exchange, the people said.
Deliberations are at an early stage, and the size and timing of the IPO could still change, the people said. A representative for MGI declined to comment on IPO-related matters. A representative for BGI referred a request for comment to MGI.
An IPO would follow a series B fundraising round in May that raised more than $1 billion from investors including IDG Capital and Citic PE, according to a company statement.
Founded in 2016, MGI makes and sells DNA sequencing instruments, reagents and related products to help life sciences research, according to its website. It counts more than 1,000 employees in about 39 countries.
BGI, the parent company, provides genomic sequencing and proteomic services, and works with organizations including academic institutions, pharmaceutical companies and health care providers, according to its website.
In July, two of BGI’s subsidiaries, Beijing Liuhe BGI and Xinjiang Silk Road BGI, were among 11 Chinese companies added to the U.S. Commerce Department’s entity list over their alleged implication in human rights abuses in Xinjiang, subjecting the firms to restrictions on access to U.S.-origin items including technology. BGI issued a response saying there was no basis for including the subsidiaries on the list, and that the company strictly abides by all international business practices and laws.
BGI Genomics Co., a listed subsidiary of BGI Group, is one of three mainland firms helping a team from Guangdong province ramp up Hong Kong’s coronavirus testing, the team’s leader said in a state media video interview. The team will work with the Hong Kong government and the three labs to help to process 100,000 to 200,000 samples per day.
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With assistance from Bloomberg