HK, Nasdaq-listed Chinese Biotech Firm BeiGene To Raise $2.08b In Share Sale

Chinese commercial-stage, oncology-focused biotech firm BeiGene on Monday announced that it is raising gross proceeds of approximately $2.08 billion through a registered direct offering.

Nasdaq and Hong Kong-listed BeiGene is offering nearly 145.84 million ordinary shares, par value $0.0001 per share, to certain existing investors, according to a statement. Investor details remain undisclosed.

Each ordinary share of BeiGene is being sold for a purchase price of about $14.23 per share, which is equivalent to a price of $185 per American depositary share (ADS). This will translate into gross proceeds of about $2.08 billion and net proceeds, after estimated offering expenses, of $2.07 billion.

Beijing-based BeiGene is selling these shares through a registered direct offering, which in its simplest form, refers to an offering of securities that are registered with the Securities and Exchange Commission (SEC) to pre-identified investors. As such, the shares purchased by the investors are not restricted but readily tradable.

Unlike most registered direct offerings that usually involve the use of a placement agent who places the securities directly through its existing relationship with a broad range of institutional and other investors, BeiGene said that the offering is being made without an underwriter or a placement agent. As a result, the company has no need to pay any underwriting discounts in connection with this offering.

The offering is expected to complete on or about July 15, 2020, subject to customary closing conditions, per the statement. BeiGene intends to use the net proceeds from the offering for working capital and other general corporate purposes.

Credit Suisse acts as the corporate finance advisor to the pricing committee of BeiGene’s Board of Directors in connection with this offering. Goodwin Procter LLP serves as the legal counsel of the deal.

Founded in 2010, BeiGene is a global, commercial-stage biotech company specialized in discovering, developing, manufacturing, and commercializing innovative molecularly-targeted and immune-oncology drugs for cancer treatment.

Backed by investors like U.S. biopharmaceutical firm Amgen’s corporate venture fund Amgen Ventures, Singapore’s GIC, and Asia-focused private equity major Hillhouse Capital, the company has over 3,800 employees in China, the United States, Australia and Europe.

It currently markets two internally-discovered oncology products: BTK inhibitor BRUKINSA™ (zanubrutinib) in the United States, and anti-PD-1 antibody tislelizumab in China. The company’s revenue for the three months ended March 31, 2020 was $52.06 million, compared to $77.83 million in the same period of 2019, according to its latest financial results.