Innovent Biologics’ HK IPO sells long-term value

The drug developer will be the second biotech firm to list in Hong Kong without any profits or revenues. It believes that China’s underpenetrated biologics market provides a massive opportunity in the long run.

Chinese biologic drug developer Innovent Biologics has decided to press ahead with plans to raise HK$3 billion to HK$3.3 billion $377 million to $423 million from an initial public offering in Hong Kong as it started its retail bookbuild on Thursday. It has been unfazed by the recent strong selloff in shares of newly listed biotech firms.

Should it be able to start trading on October 31, as scheduled, the seven-year-old company will become the fourth biotech firm to list in Hong Kong since the local stock exchange amended rules that permit biotech companies without any profits or revenues to sell shares to the public.

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