Genetron Exceeds All Expectations With $256 Million IPO

The Chinese company is set to lift off under the symbol "GTH" on the Nasdaq today.

CapitalWatch Staff
    Jun 19, 2020 6:15 AM  PT
Genetron Exceeds All Expectations With $256 Million IPO
author: CapitalWatch Staff   

China-based Genetron Holdings Ltd., ready to debut Friday on the Nasdaq Global Market as "GTH," has priced its offering at $16 per American depositary share, above the expected range.

A day before IPO, Genetron upsized its offering by 3 million shares to 16 million ADSs in total, generating IPO proceeds of $256 million. That's a significant increase from the earlier estimate of $100 million.

Earlier, the company had set the price range at $11.50 to $13.50 per share.

Underwriters on the deal, Credit Suisse Securities (USA) LLC, China International Capital Corp. Hong Kong Securities Ltd., BTIG LLC, and Canaccord Genuity LLC, may acquire an additional 2,4 million ADSs for over-allotment.

Based in Beijing, Genetron provides precision oncology solutions including early screening, diagnosis, treatment recommendations, and monitoring. According to its prospectus, it operates a one-stop cancer care platform connecting patients with healthcare providers and uses AI and big data to manage health profiles of patients.

For the full year 2019, Genetron reported revenue grew 44% to $45.7 million. Net loss mounted to $95.5 million. For the first trimester of 2020, the company posted revenue of $10.9 million on losses of $16.3 million. Genetron had cash and cash equivalents of $25.5 million as of March 31.

In a time of increased skepticism surrounding Chinese companies, Genetron's fully diluted market value of $1.5 billion might bode well for China-based companies on the path to a New York IPO.