Summary
Beigene, Ltd. (ONC) announced on November 16, 2020, a preliminary proposal approved by its Board of Directors to offer and list ordinary shares on the Shanghai Stock Exchange's Science and Technology Innovation Board (STAR Market). This potential offering, referred to as the "Proposed Issue of RMB Shares," is intended to raise capital in RMB by selling new ordinary shares primarily to target subscribers in the PRC. The shares will be of the same class as existing ordinary shares listed in Hong Kong and will trade in RMB. The company anticipates this offering could be completed in the first half of 2021, subject to numerous conditions. The proceeds from this proposed offering are intended to be used for the principal business of the Group after deducting issuance expenses. While this is a preliminary proposal, and no formal applications have been made, it signals BeiGene's strategic interest in accessing capital markets in China. Investors should note that this is a preliminary step, and the offering is subject to significant approvals, including further board and shareholder approvals, and regulatory clearances in China, Hong Kong, and other relevant jurisdictions.
Key Highlights
- 1Preliminary proposal approved by the Board for offering and listing ordinary shares on the Shanghai STAR Market.
- 2The offering, termed "Proposed Issue of RMB Shares," aims to raise capital in RMB by issuing new ordinary shares in China.
- 3The RMB Shares will be ordinary shares, ranking pari passu with existing Hong Kong-listed shares, and will trade in RMB.
- 4Potential offering size is limited to not exceed 10% of the company's total issued shares, with an option for an overallotment of up to 15%.
- 5The proposed offering is expected to be completed in the first half of 2021, subject to market conditions and multiple approvals.
- 6Proceeds are intended for the principal business of the Group.
- 7This is a preliminary proposal; no formal applications have been made to regulatory authorities.