US biotech firm mulls Hong Kong IPO following bourse reform

Stealth BioTherapeutics is reportedly seeking around $200m for its public debut.

Bloomberg reports that US biotech firm Stealth BioTherapeutics is reportedly mulling an IPO in Hong Kong in a win for the city that recently introduced sweeping reforms to its bourse to attract profitable companies.

Also read: Can Hong Kong successfully lure biotech firms from Nasdaq?

Backed by Morningside Group, Stealth BioTherapeutics is seeking to raise around $200m in a sale although preparations remain at an early stage and details of the offering could change, insider sources told Bloomberg.

The city’s exchange approved the biggest change to its IPO rules in two decades by accepting applications from pre-profit biotech firms and companies with weighted voting rights structures. 

The biotech sector was chosen as initial focus in widening market access as they make up a majority of companies in the pre-revenue stage seeking a Main Board listing and activities like clinical trials tend to be highly regulated under the current regime that sets external milestones on development progress, an earlier noted reported.

Here’s more from Bloomberg:

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