Summary
BeiGene, Ltd. (ONC) filed an 8-K on January 29, 2021, detailing significant progress regarding its proposed public offering of ordinary shares on the Science and Technology Innovation Board (STAR Market) of the Shanghai Stock Exchange. The Shanghai Stock Exchange has accepted BeiGene's listing application for this offering, which will involve issuing new ordinary shares denominated in Chinese Renminbi (RMB) and listed on the STAR Market. These RMB shares will be distinct from BeiGene's existing shares listed on the Hong Kong Stock Exchange and its American Depositary Shares (ADSs) on the NASDAQ, meaning they will not be fungible. The company intends to raise approximately RMB 20 billion (USD 3.1 billion) through this STAR Offering, with the proceeds earmarked primarily for clinical development and research projects (66%), followed by working capital replenishment (30%), and smaller allocations for R&D and bio-manufacturing center construction. The offering is contingent upon several factors, including market conditions, shareholder approval at an upcoming Extraordinary General Meeting (EGM), and necessary regulatory approvals in China.
Key Highlights
- 1Shanghai Stock Exchange accepted BeiGene's listing application for a public offering on the STAR Market.
- 2The offering involves issuing new ordinary shares in RMB, listed and traded on the STAR Market in China.
- 3These new RMB shares will not be fungible with existing ordinary shares listed in Hong Kong or ADSs on NASDAQ.
- 4BeiGene anticipates raising approximately RMB 20 billion (USD 3.1 billion) from the STAR Offering.
- 5Proceeds are intended to primarily fund clinical development and research projects (66%) and working capital (30%).
- 6The STAR Offering is subject to shareholder approval at an EGM, market conditions, and regulatory approvals.
- 7Proposed amendments to the company's Articles of Association will be presented at the EGM to comply with PRC regulations.