Carlyle-backed Chinese laboratory chain Adicon goes ahead with US$52 million Hong Kong IPO on third attempt
- The Hangzhou-based company plans to sell 32 million shares at HK$12.32 each, with trading set to begin on June 30
- Deloitte forecasts 100 new listings in Hong Kong this year that will raise some HK$180 billion (US$23 billion)
Adicon Clinical Laboratories, a mainland Chinese laboratory chain backed by Carlyle Group, is seeking to raise HK$409 million (US$52 million) from an initial public offering (IPO) in Hong Kong, joining peers in the biotech and healthcare sectors seeking to list despite poor market sentiment.
The Hangzhou-based company plans to sell 32 million shares at HK$12.32 each, with trading set to begin on June 30, according to an exchange filing. It comes after two previous attempts to list between 2021-22 on the exchange had lapsed.
Genecast Group, another Chinese biotech firm that provides oncology molecular diagnostics and testing services in mainland China, revived its IPO listing application in February in Hong Kong, after it lapsed. UGenix Biotech, a maker of clinical testing products and services, also filed a listing application the same month. However, neither has divulged other plans including fundraising target or timetable.
Adicon is an independent clinical laboratory chain with facilities across China. Founded in 2004, the company specialises in medical testing and its Covid-19 testing services led to rapid revenue growth in recent years.
Five cornerstone investors – MR Global, Snibe Hong Kong, Fosun Diagnostics, Timestar Elite and Corelink – are subscribing to US$37.17 million worth of Adicon shares. The money raised will go towards research and development, expansion of its labs and will also be invested in automation and AI to provide better analysis, diagnosis and customer services, the company’s executives said at a press conference on Monday.