Genetron Holdings, a China-based precision cancer treatment developer backed by gene engineering services provider Vcanbio Cell & Gene Engineering, has raised $256m in an initial public offering on the Nasdaq Global Market.
The offering consisted of 16 million American Depositary Shares (ADSs) – each representing five ordinary shares – priced at $16.00 each. The company had originally planned to issue 13 million ADSs priced at $11.50 to $13.50.
The IPO price included 1.31 million ADSs bought by Genetron’s shareholders, including 1.25 million by Vivo Capital Fund.
Genetron is developing precision oncology therapies and diagnostics products using molecular profiling. It will put 40% of the IPO proceeds into product and technology development and 30% toward sales and marketing while 30% will be used as working capital.
The company received $11.2m from investment firms Jiadao Capital and Chongde Hongxin in July 2015, $2.3m from Yueyin Venture Capital the following month and $7.9m from Yueyin and Guoqian Venture Capital in September.
Vcanbio invested approximately $15m as part of a eight-figure series B round in 2016 that included Yueyin Ventures, New Horizon Capital and Shenzhen Share Capital Partners, preceding a $10.9m investment by Tianjin Tianyuantong later the same year.
Genetron subsequently closed a $61.6m series C round led by Zhongjin Kangrui Medical Industrial Fund and backed by V Star Capital and Shenshang Xingye Fund in early 2018.
The company’s largest shareholder, FHP Holdings, is a holding vehicle for several company executives and owns a 23.2% stake that was diluted from 28.3% in the offering.
Vivo Capital’s share was increased from 7% to 7.2% while China International Capital Corporation owns 13.1% post-IPO and investment partnerships Tianjin Genetron Jun’an Business Management 6.8% and Tianjin Tianshu Xingfu 5.2%.
Credit Suisse Securities (USA) and China International Capital Corporation Hong Kong Securities are joint bookrunners for the IPO while BTIG and Canaccord Genuity are co-managers. They have 30 days to buy up to 3.4 million more shares that would boost its size to about $294m.
