Could this Biotech be the First Billion-Dollar Hong Kong Startup to Go Public?
Hong Kong’s Prenetics might be the first billion-dollar Hong Kong startup to go public. It is reported that Prenetics is planning a merger with a special purpose acquisition company (SPAC) called Artisan Acquisition (Artisan) by the end of 2021, for a value estimated to be over $1.3 billion.
Artisan has already raised $339 million in its initial public offering (IPO) and has obtained $60 million through forward purchase agreements with Aspex and PAG. However, it should be noted that it is not a done deal yet due to several factors that will come into play.
SPAC is a relatively new way to go public. The SPACs will go through the traditional IPO process to raise money and only use them to acquire or merge with a private firm. By doing so, the acquired company can evade the IPO process and be listed on the board through the SPAC’s shell. As a result, there has been an increasing number of SPAC deals in the biotech industry.
Prenetics’ Biggest Strength
Prenetics is well-known in the diagnostic and genetic testing industry, especially during the COVID-19 pandemic. The firm has installed COVID-19 screening devices in Hong Kong International airport and the London Heathrow Airport to accelerate the testing process of travelers.
Other than that, Prenetics in April announced a 3-year collaboration with the Oxford University to further develop Oxford’s rapid molecular testing technology for infectious diseases to deliver fast and accurate molecular testing globally.
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