Ascentage Pharma said on Tuesday it was targeting a valuation of $1.75 billion in its initial public offering, becoming the first sizeable Chinese firm to pursue a listing in the US this year.
IPOs of Chinese companies in the United States have picked up modestly in recent months following a long hiatus after ride-hailing giant Didi Global was forced to delist in 2022 due to backlash from Beijing.
Ascentage, backed by Japan’s biggest drugmaker Takeda Pharmaceutical, is looking to raise $149 million by offering about 7.3 million American depositary shares at $20.34 each.
China-based Ascentage, whose shares have been listed on the Hong Kong stock exchange since 2019, is focused on developing and commercializing therapies that target malignancies.
The listing also comes at a time when U.S. President Donald Trump has warned of imposing more tariffs on Chinese goods, which might potentially trigger a trade war again between the world’s two biggest economies.
“Compared to the U.S., the Hong Kong market is currently undervalued,” said IPOX research analyst Lukas Muehlbauer, adding that there was a clear potential upside if investors recognize this valuation gap.
Companies outside the U.S. often pursue a dual listing in New York to widen their investor base and increase the liquidity of their shares.
Foreign companies accounted for more than half of public listings in the U.S. last year, according to accounting firm EY.
Ascentage’s olverembatinib is approved in China to treat chronic myeloid leukemia. Last year, the company finalized a $75 million equity investment from Takeda as part of a licensing deal worth up to $1.3 billion for the drug.
“The Takeda deal highlighted their main leukemia drug as potential best in class,” Muehlbauer said.
Ascentage will list on the Nasdaq under the symbol JPMorgan and Citigroup are the underwriters for the offering.
Reuters
