BeiGene’s IPO Is Finally Closed. What’s Next?Author: Jane Fazackarley
The first initial public offering of 2016 saw strong demand for shares in biopharmaceutical company BeiGene, a China-based company, which was first established six years ago. The business, which has offices around the world, including in Fort Lee and Massachusetts, and a workforce of more than 200, specializes in developing revolutionary targeted immuno-oncology drugs to treat cancer. Now the company is committed to discovering and developing a new generation of treatments and early stage trials of these therapies are underway.
BeiGene IPO Closure
The IPO was closed on February 8, 2016. A total of 6.6 million shares were sold and underwriters were offered the choice of buying extra shares. The IPO performed better than predicted, with the share prices soon exceeding $28. The IPO raised in excess of $158 million for BeiGene, and it’s thought some of the company’s financial backers were among those purchasing shares.
Pricing announcement for BeiGene IPO deal
Pricing for the IPO was officially announced in early February, when BeiGene issued a press release stating that it would be offering 6 million American Depositary Shares at a value of $24.00 per share; this valued the company at close to $900 million. The shares were offered via a prospectus.
BeiGene’s aims and how it will trade on the stock market
It was BeiGene’s aim to raise $127 million from its public offering, but this goal was exceeded and the value of shares continue to grow.
BeiGene shares are being traded on the NASDAQ Global Select Market index, where it will be identified by its BGNE symbol. A number of major financial institutions, including Goldman Sachs, Morgan Stanley and Cowen and Company are acting as underwriters.
Trading officially began on February 3. The early stages were impressive, with shares quickly surging to $28.62 – an equivalent of a 19 per cent increase in value. Due to the current uncertainty of the stock markets, the robust start to trading is considered a success as it comes after a period of mixed fortunes for pharmacy shares in 2015.
With a promising future, one day BeiGene, hopefully, would be able to provide innovative treatments for various forms of cancer and that’s why the value in BeiGene shares continues to climb and they stand at $32.37 at the time of writing.
Background to the IPO
The IPO was first announced in late 2015 when an S1 form, used by companies planning on going public, was registered with the U.S. Securities and Exchange Commission. The company didn’t issue details of its terms, but at the time the share offering had an estimated value in the region of $100 million.
BeiGene’s future plans
When registering the S1 Filing, BeiGene explained how the future of cancer treatment would need vital new research tools. The company added that its strategy would involve a pipeline of possible drug candidates, which will have the potential to be the best single drugs to help fight the disease. The money raised from the public offering will help the company to fund its pipeline. There are also plans to use the new funding as working capital and for general business purposes.