Hong Kong Biotech Firms Eye Listings on China’s Star Board

Julia Cristina Silvi Fioretti

14 Oct 2019, 06:27 PM IST

(Bloomberg) -- CanSino Biologics Inc. is joining other Hong Kong-listed biotechnology companies in seeking to list on Shanghai’s Star Board, just six months after going public in the financial hub that is now roiled by protests.

The Chinese developer of vaccines for diseases including Ebola said on Monday it planned to issue up to 24.8 million A shares on the Nasdaq-style Star market, which aims to attract startups in the tech space to prevent them from listing overseas as many have done in the past.let m

CanSino Biologics is following the footsteps of Shanghai Haohai Biological Technology Co., which is seeking to raise 1.48 billion yuan ($210m) on the Star Board, and Microport Scientific Corp., which spun off a subsidiary in a listing on the board in July.

The Star Board is China’s answer to New York and Hong Kong, where many of the country’s biggest tech names are listed. The venue is seen as a testing ground for more relaxed rules on listing and trading, allowing unprofitable firms to go public and scrapping limits on price and debut gains.

Some 34 firms in sectors ranging from biotech to robotics and semiconductors have gone public on the board so far, with an average eye-popping gain of 114%, according to data compiled by Bloomberg.

Hong Kong also changed its rules last year to allow biotech companies with no revenues to go public there, aiming to rival Nasdaq, typically the popular listing venue for the firms.

Since the rules were changed in April 2018, Hong Kong has seen 13 biotechs float shares, with an average decline of 0.7% through Friday, according to data compiled by Bloomberg. CanSino Biologics is the third-best performer among them, having risen 59% from its offer price.

UPCOMING LISTINGS:

Keboda Technology
- Size $166m
- Shanghai stock exchange
- Priced Sept. 3; listing date TBA
- CICC
Chongqing Rural Commercial Bank
- Size $1.5b
- Shanghai exchange
- Taking orders next week; listing date TBA
- CICC, China Sec.
JS Global Lifestyle Co. Ltd.
- Hong Kong stock exchange
- Size $500m
- Premarketing Oct. 2-11
- Credit Suisse, Morgan Stanley, ICBC International
Bangkok Commercial Asset Management
- Thailand exchange
- Size at least $700m
- Meeting overseas investors this week
Lotte REIT
- Korea stock exchange
- Size $353m
- Listing date Oct. 30
- HSBC, Korea Investment & Securities, Nomura
Home Credit
- Hong Kong exchange
- Consumer finance unit of Czech billionaire Petr Kellner’s PPF Group
- Premarketing started Sept.
- Citi, HSBC, Morgan Stanley
China Feihe Ltd.
- Hong Kong stock exchange
- Size about $1b
- Premarketing as soon as this week
- JPMorgan, CMS, CCB International

More ECM situations we are following:

Indian Railway Catering & Tourism doubled on its first day of trading, the best debut for a local company since 2017, after its public float emerged as the most sought after for the nation’s state-run companies.
Vietnam’s Bamboo Airways expects a market capitalization of as much as $1 billion at its planned listing in the first quarter next year.
Equipment hire business Onsite Rental Group is planning an IPO on the Australian stock exchange in November, according to terms for the deal obtained by Bloomberg.
Shanghai Stock Exchange will postpone the release of a key index for tech-focused Star Board as the current 33 companies listed on it are not enough to make up a meaningful gauge, according to a statement from the bourse Friday.
Indonesia’s Duniatex is mulling an IPO for debt restructuring, Kontan newspaper reported.