Dada Nexus, Legend Biotech to Raise Over $300 Million Each on Nasdaq Friday

Dada Nexus is expected to lift off as “DADA” and Legend Biotech is set to trade as “LEGN” on Friday as investors brush off new legislation uncertainty.

Anna Vodopyanova
    Jun 05, 2020 3:30 AM  PT
Dada Nexus, Legend Biotech to Raise Over $300 Million Each on Nasdaq Friday
author: Anna Vodopyanova   

Even as new legislation tightening oversight of foreign company listings in the United States is looming ahead, Chinese companies with strong backing are still welcome on Wall Street. Just look at Kingsoft Cloud (Nasdaq: KC), which raised a whopping $551.3 million in early May and is now trading way above its IPO level. On Friday, two more Chinese ticker symbols are set to light up as investors brush off future uncertainty.

Dada IPO Target Exceeds $300 Million

Dada Nexus Ltd. was seeing strong investor demand in the runup to its listing at a time when China's retailers are reaping fruits of the 618 mid-year shopping spree.

Reuters reported Thursday, citing unnamed sources, that the company increased its offering from 16.5 million American depositary shares to 21 million. The pricing is expected at the midpoint of the announced range of $15 to $17 and thus the grocery delivery giant is set to raise $336.

Two main shareholders in Dada, (Nasdaq: JD) and Walmart (NYSE: WMT), have expressed interest in purchasing up to $60 million and $30 million in the float, respectively.

Underwriters are Goldman Sachs (Asia) LLC, BofA Securities Inc., and Jefferies LLC.

Dada has said in its filings that it aims to use the proceeds of the IPO to invest in technology, grow its user base, and other purposes.

At Top of Range, Legend Biotech Will Exceed Dada's Target

Like Dada, the biotech company, developing its CAR-T treatment, didn't wait too long from its public filing with the SEC to the trading debut. Legend Biotech has Johnson & Johnson (NYSE: JNJ) among its collab partners and has backing from parent GenScript Biotech (HKEX: 1548).

In addition, Legend Biotech has headquarters and operations in the United States, which raises its credibility in the eyes of the investors.

The company is set to sell 18.4 million American depositary shares in the price range of $18 to $20 per share.

Underwriters on today's IPO, which could raise Legend Biotech up to $368 million, are Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, and Jefferies LLC.

Legend Bio said it intends to use the proceeds from the offering in New York for the clinical development of its lead therapy candidate, as well as for the manufacturing facilities and commercial launch of the product.

Last month, the Nasdaq Stock Exchange has proposed regulations including imposing a minimum offering size of $25 million and subjection to inspection of Chinese company auditors. The U.S. Senate supported the crackdown with a similar inspection proposal, in addition to forcing companies to disclose whether they have ties to the government.